See, there is a reason why almost all electronics are either square or rectangular; it's because there are a lot of design issues that arise when you break that. The components for electronics are all designed to be angular, like the motherboard, processors, battery, and even the display. So, the striking round design for the Moto 360 is facing challenges because of that round form factor. The rumor has it that Motorola is already facing troubles creating and placing the internal components and also in cutting round displays for the device.
Given all of the early troubles, the rumor is that the Moto 360 will be fairly limited in terms of availability, simply because Motorola won't be able to make enough in time for the scheduled release this summer. It also means that the Moto 360 may be even more expensive than we have already been assuming it would be, but we wouldn't bank on that. Limited availability is believable, but we can't imagine the 360 being released at a price tag higher than $299 or so.
Motorola is planning a Google+ Hangout today at 2PM EST with the lead designer of the Moto 360, so we're hoping to get a comment on this rumor soon.