Major Nelson confirmed the release of the title, which is the first time it will appear on consoles. To coincide, Runic released a gameplay trailer showing off just what's changed as the game moves from the keyboard and mouse setup to a controller.
You'll notice immediately that the UI has been completely overhauled to support console play. There's also no cursor in the game, ever, as opposed to the PC edition which utilizes the mouse. Combat has changed a bit as well, according to the FAQ on what's different.
It will be interesting to see how this plays on consoles. With Blizzard hinting at a Diablo III console release, we may finally see the hack-n-slash action RPG returning to console dominance.