Summary
Project X is an unreleased spin-off game set in the "bad ending" part of the The Legend of Zelda timeline. It would have explained the origin of the Master Sword and featured Sheik as the main protagonist rather than Link. The game became known through the concept art being found on the internet through the original artist's web page, which was later taken down. After further research it was discovered that the game was being developed by Retro Studios as a concept, being greenlit by Nintendo to become a prototype, which didn't get approved. The gameplay seems to have involved an arcade-like whack-a-mole-inspired movement with the Wii Remote to fight against enemies (with wolves being the first ones programmed in the game).
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