With the success of The Legend of Zelda: Skyward Sword on the Wii and Mario Kart 7 on the 3DS, it's clear that there is still a market for the Nintendo classics, and Retro Studios has been a big help with that. If Shigeru Miyamoto is anything to go by, Retro may even work on another one of Nintendo's biggest franchises.
Retro Studios first made a name for themselves by creating the excellent Metroid Prime series, which brought Metroid to the third dimension and demonstrated that it was possible to make the game first-person and still be successful. They later followed that up with Donkey Kong Country Returns, helping Nintendo continue the revival of 2D-platformers by bringing back one of the best there was. More recently, they had a hand in Mario Kart 7, developing most of the courses and artwork used in the game.
In an interview with Wired, Shigeru Miyamoto explained that the intent behind bringing Retro Studios in to work on Mario Kart was to provide a sort of mixture between Japanese and Western development styles, in order to appease fans of both. There were a number of courses in the game that had a distinct Western feel to them, while others were more of a Japanese design, and having the two mixed together proved to be a good idea. That, coupled with the success of Metroid Prime, led Miyamoto to wanting to have Retro work with them again on other flagship Nintendo franchises, and The Legend of Zelda series was the one he suggested.
Though it was just a suggestion made by Miyamoto, this could coincide with the story that Retro is already working on a game for the Wii U. At E3 this summer, we did also of course see snippets of footage of what a new Zelda game (tech demo) would look like on the Wii U was introduced, but whether or not it was from an actual game that's in development is up for debate. Whatever the case, Retro making a Zelda game would be very interesting, as they could take the series in a completely different direction if given the chance.
Would you like to see a Retro-made Zelda game?