Step 1 :First, let's understand the meaning of the problem. We are given a function $y=f(x)=b^x$, where $b>1$, and we need to find the range of the new function after translation: $y-2=f(x-1)$.
Step 2 :Now, let's rewrite the new function in terms of $f(x)$: $y=f(x-1)+2$.
Step 3 :Since the original function $f(x)=b^x$ is an exponential function with a base greater than 1, its range is $(0,\infty)$.
Step 4 :The new function is a translation of the original function by 1 unit to the right and 2 units up. This means that the range of the new function will also be shifted 2 units up.
Step 5 :So, the range of the new function is $(0+2,\infty)=(2,\infty)$.
Step 6 :\(\boxed{(2,\infty)}\) is the final answer.