The official Boxee blog cites both hardware and software issues, while stressing that the experience will be as good as or better than Boxee on PC.
Oh Boxee Box, how you disappoint us. We've been talking about you for so long now and we were really looking forward to that Q2 release. But we're nearing the end of the second quarter now and you never showed up. We don't like being stood up Boxee, but we understand that sometimes things do happen. We know you're trying to get Flash 10.1 running smoothly and make 1080p streaming simple.
Point is – the Boxee Box is gonna be a little while yet. It's still slated for a 2010 release, and according to the official blog, it's still coming in at under $200. There's a lot to get working on the device, and it's understandable that there would be a delay.
But with all of the new connected devices coming out, like the PopBox slated for July 4th and the upcoming Google and Apple sets, the delay could end up getting the company lost in the shuffle. Then again, November is usually a pretty good month for sales, so proper promotion could make the Boxee Box huge.
Source: Boxee Blog