The original Torchlight's official Xbox Live release date was just announced for March 9th with a price tag of 1200 
. By all accounts Runic Games spent a lot of time tweaking and balancing the game for gamepads. It seems this extra care caused the development to take longer than expected and took more resources away from the development of Torchlight 2 than Runic Games expected. Because of this the game is going to get a slight delay.
I'd say that the Xbox project, having to do the extra work with the interface, has pushed us back a little bit, so we're probably talking July right now for Torchlight II. It's going great, however. We've actually got some optimisations and technical improvements that went into making the Xbox version that we've been able to go back and implement into Torchlight II for PC.
Max Schaeffer, CEO Runic Games
Other improvements include faster loading times, tighter animations, and more. Still no official word on the co-op player count - but a two month delay isn't all that bad for this highly anticipated title. Torchlight 2 was originally slated for a May release.
Source: Digitalspy.com