Diablo 3 comes this May. Runic once respectfully joked that it would have Torchlight 3 out before Diablo 3 launched, but after significant delays, Torchlight 2 will likely launch after Blizzard's behemoth.
"We know a lot of you are worried about us. We've heard what you're saying, and sure we've had similar discussions," a Runic statement notes on the Torchlight 2 site. "But we began making the first Torchlight in 2008 when development on Diablo 3 was already underway. We didn't let that be a reason that we couldn't make an RPG."
"There will be unforeseen challenges along the way, no matter what business you're in. We've chosen to stay small with a total team of 32. We're pretty sure that we want this game out more than anyone (not just so that we can resume a normal sleep schedule!) -- but we are going to do it right. That's our commitment to you, and to ourselves."
Torchlight 2 currently has no launch window. Runic Games is scheduled to launch its Torchlight MMO in late 2012 or early 2013.