Squid-Hunt

Sinking Ships is a minigame which appears in the The Wind Waker.

Location
The minigame is run by the pirate-savvy host, Salvatore, inside the Game Room on Windfall Island. It's possibly the earliest minigame available in the game.

Rules
The game is similar to Battleship, in that Link must find and destroy three squids that are randomly hidden somewhere on the 8x8 playing grid, with the assortment of "bombs" he is given. The squids are two, three or four squares in length, and only reveal their locations upon "bombing" the squares in which they are hidden. To increase the difficultly of this game, Link doesn’t place his own squids, instead he must locate the computer-placed squids within 25 shots. If Link uses all 25 "bombs" and is unable to fully locate all five squids, he wins nothing and must try the game over in order to vie for a prize.

The first time Link reveals all 25 squids, he is rewarded with a Piece of Heart. A second victory under the same rules will yield Link Treasure Chart No 7, and every one after that will provide a continuous supply of Purple Rupees, worth 50 regular Rupees. However, of Link can locate all three squids using 20 shots or less, he will be rewarded Treasure Chart No 23, and make it so that every game in which Link beats his record, he will win an Orange Rupee, worth 100 regular Rupees.

Trivia

 * The Sinking Ships mini-game is the first occurrence of a Battleship-like game appearing in the Zelda series.
 * Salvatore, the host of this mini-game, also runs the Barrel Shoot mini-game on Spectacle Isle, providing a similar pirate-like cosplay before the mini-game itself.