A Retro Studios Zelda Not Entirely Out Of The Question
In an interview with IGN, Nintendo's Shigeru Miyamoto said that handing the Zelda reigns to Retro Studios isn't an impossible idea, but it is an unlikely one.
Retro Studios developed the Metroid Prime games, as well as the recent Donkey Kong Country Returns, so it has a good track record. It sounds like Miyamoto is confident in Retro's ability to create a quality Zelda title, but there are factors that would make it difficult to develop the game with the Nintendo team based in Japan, and Retro based in Austin, Texas.
Miyamoto told IGN, "Traditionally I think that the Zelda team has always had a close contact with anyone who's working on a Zelda game. If you were going to have that happen in the US at Retro, that would be kind of difficult for them to be able to coordinate. Certainly they're too busy for that sort of thing right now. It would probably require me to be involved to a great extent as well, so I would have to get over quite a bit too. I'd probably have to live in Texas... [laughs]"
Neither Nintendo nor Miyamoto are telling anybody what Retro is currently working on, but apparently it is keeping the studio very busy. Rumors have pointed towards a new Star Fox, or another entry into the Metroid franchise, but it is all conjecture.