Sony has closed down Guerrilla Cambridge and Evolution Studios (and I'm probably forgetting some more studios they closed). What studio has Nintendo closed down recently?

Studios like Grezzo, Good-Feel and Next Level Games seem to be doing well under Nintendo's wing. 

Yes Sony does close studios. Im not saying they dont.

However you never really hear developers come out and say "our game failed because of how hard it was to work with sony".

Its implied often lately that game developements that failed, and studios that where closed by MS, MS played a big part in why that went on to happend.

(scalebound, fable, ect)

This article is a few years old, but it's the most comprehensive analysis of this topic I've come across. Basically it posits a combination of a) changes in the industry such as the rapid development cost/team size expansion catching Rare out b) Rare underestimating how much of their own success was down to their relationship with Nintendo and c) Microsoft not providing the kind of support Nintendo did.

Who killed Rare?

Retro isnt close to ND or Bungie not in staff or game output 

Edit: they could be one day if Nintendo wants it

They are releasing games as often as Bungie are

Everyone here seems to be overlooking one vital point: Rare already was Nintendo's Bungie/Naughty Dog.

we got Destiny 2 coming next when is the next Retro game? Im genuiely curious, but you are right, they just made Halo for Xbox and they seem to be a Destiny (ugh) machine now.

It will probably get announced at this year's E3. 

Yes, it could, but what else could have they done?

The Stamper brothers decided they had enough and sold their shares of Rare (51%) to MSoft, so Nintendo's only other option was to sell the other 49% they had. I mean, no one can really expect a first party to share a studio with another first party.

The problem is that Nintendo didn't try hard enough to find or create a comparable studio after that.

I was thinking this exact same thing, they were exclusives back in the SNES/64 days when they hit it huge with some of the most amazing console titles to date. The good thing is the band is essentially back together with all of the real RARE creative talent now heading up Playtonic Studios and creating Yooka-Laylee. Another note, the fact that Grant Kirkhope, the musical composer from the studio and a lot of the original RARE titles is most probably working with Nintendo on that new Rabbids/Super Mario crossover is huge. That fire between the studio and Nintendo may be on the verge of rekindling :)