In the wake of the shut down of Flagship Studios last year, members of the team's Seattle branch reformed last August to create Runic Games. The team members all worked on Flagship's free-to-play MMO Mythos that went into beta testing but shut down alongside the company before it could officially launch.

Today it was announced that Chin-based publisher Perfect World has signed on to publish Runic Games's first project. Not surprisingly it's an MMO game with the title Torchlight. The game itself is described as being an "Action-MMORPG" with characters that are " in search of the magic ore that imbues their equipment with power, yet imperils their very existence." No release date for the game was announced.