Torchlight is billed as a simple, action-oriented online PC game in the style of Diablo. The basic setup: "Adventurers set out from the town of Torchlight into the nearby mountains in search of the magic ore that imbues their equipment with power, yet imperils their very existence." The title is set to be published worldwide exclusively by Chinese online gaming company Perfect World.

Runic Games was founded by brothers Max and Erich Schaefer, two co-founders of Diablo developer Blizzard North.

Since the dissolution of Flagship, all 14 developers that worked on the company's action-RPG Mythos have joined Runic. The studio has also been bolstered by the addition of Diablo and Diablo II composer Matt Uelmen.