It's only fitting for a legend to be based on a princess, but one of the most famous faces in Nintendo royalty is about to lose her crown, as Eiji Aonuma has revealed that Zelda is no longer a princess in Legend of Zelda: Skyward Sword. So what is Link's relationship with his long time collaborative partner? Aonuma says:
She's a childhood friend, but she goes away in the midst of the game and it's Link's job to search for her.
She may not wear the crown, but she'll still play a major role in the game's story, as Aonuma explains:
This game's plot is something like a school drama, you could say. The flying sequence at the E3 demo is Link competing against his classmates. One of them looks kind of a like a bad guy, as you saw, and he shows up in other ways in the game too, since he has a major thing for Zelda.
Check out the game's E3 trailer below and ruminate about Zelda's lack of royal connections in the comments further down.