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Princess Zelda has been confirmed as a playable character in the new Super Smash Bros. for Nintendo 3DS and Wii U, and it looks like she has a few new tricks up her sleeve. Most notably is the suit of armour she inhabits in The Legend of Zelda: Spirit Tracks, which you can see in the screenshot above.
As of now, whether or not Zelda will be able to transform into Sheik is unknown.