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Peh said:

Isn't it too early to come to such a conclusion? I mean.. they should've wait a month or 2 to see how much the sales decrease, because they will.

Or they've got Pokemon Stars which pushes the visuals of the switch then 16 million are not enough.

Thats not how things work, next month they will have financial meeting and they need to say how much Switch they planned to sell for whole FY year. With great launch, great demand, probably some new games (maybe Pokemon for holiday season), they think they will sell 10m in FY 2017. (March 2017. is FY 2016).