The Nintendo conference which took place last night was a boon for fans of the Legend of Zelda series, as it contained plenty of tasty tidbits about the upcoming Skyward Sword title.
One of the new reveals about the Skyward Sword includes its new "Upgrade System," which Nintendo released separately as a video, which you can skip right to the bottom to check it out.
In the game, Link can add a variety of crafting ingredients to his collection by searching under pieces of the environment and killing certain monsters. Crafting is then performed at the Scrap Shop in the Bazaar, where Link can upgrade the equipment he carries with him. Every piece of gear requires a certain amount of ingredients. The standard Wooden Shield can, for example, be upgraded into a much more durable Banded Shield.
The Legend of Zelda: Skyward Sword is bound for the Nintendo Wii in Q4 2011. You can expect to see more news of the game as it approaches release.