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While I agree Retro is one of the best developers of there. I don't see why they should handle a Zelda game when Nintendo has already an huge studio dedicated to it. Also, I don't see why Zelda needs to be westernised, I don't think actually Zelda feels particulary oriental. What do they want, Skyrim with Link?
Also so far what Retro has done is to pull out of the vault some old IPs and give them a makeup. I'd rather play Skyward Sword and later decide if Zelda needs to be refreshed or not.