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Well you see...

It has to do with how the game was developed, specifically the order in which each part of the original game was made. They knew the game would be from a top-down perspective and feature a huge world for the player to explore. They then added items to mix up the gameplay and thats when the game started to come together. But it was at this moment that they realized that they still did not even have a name for it, and there was thi sone band the developers liked where the lead had a daughter named Zelda (or something like that), so they named the game "The Legend of Zelda" when it was like, halfway through production.

Heres another fun fact - the game was also supposed to mix elements of the past (which is still does) with elements of the future and have the player travel between the two. The player would act as the LINK between the past and future which is where the name Link comes from, and after scrapping the idea they never bothered to change the name.