This is beyond terrible. Nintendo was once known for conservative estimates - but they've been regularly lowering their forecasts the last couple of years. Let's hope they get back on track and won't make the same mistakes again with the Wii u.
3DS numbers have been really good over the holidays. That yearly forecast still reflects Nintendo's arrogance prior to the 3DS launch. They could easily sell 20m 3DS next fiscal year but this will easily prompt loads of "3DS isn't selling!" articles all over the net.