This is according to an interview that comedian Adam Conover did with The Serf Times, where he revealed that apparently due to an internal leak, Nintendo decided to cancel both the Zelda TV series and also a claymation Star Fox show that was supposed to be in development with CollegeHumor.
According to Conover, “A month later, suddenly there were reports that Netflix wasn’t going to do Legend of Zelda anymore. I was like, ‘What happened?’ And then I heard from my boss that we weren’t going to do Star Fox anymore. I thought that was weird, so I asked him what happened and he said, ‘Oh, someone at Netflix leaked the Legend of Zelda thing. Nintendo freaked out’.”
This means that when Nintendo denied the rumors that the Zelda TV show was in development, it might have been true as the company could have pulled the plug on it already. Nintendo has yet to officially comment on the report, but given the company’s penchant for keeping things close to their chest, we doubt that they will.