In previous Zelda games it has been common to seek out and receive upgraded items over the course of your travels. Your wooden shield is replaced by a Hylian shield, your Master Sword might even be put aside for a Biggoron’s Sword. The latter was actually one of my favorites to acquire, as it took a good bit of trading and effort to achieve. With Skyward Sword on the way, it’s easy to wonder just how items will be upgraded in this new game.
As you can see in the video below, it seems that your items will be truly upgraded, rather than replaced. The idea is that you’ll need to gather components from across the land, which will be used to make more efficient versions of your existing items. Naturally, this means you’ll be scouring the land to defeat enemies, in the hopes of getting the right component.
Something else interesting from this video is that it appears your shield will take damage from use. When talking to the guy that upgrades your items, you are asked if you would like him to fix your shield. It looks like you’ll be given a number of reasons to want to get your equipment upgraded as much as possible.