Yes, it means that it doesn't recognize the chip inside the DSTT and therefore can't determine if it's real or not. If it's new, you should be able to open up the DSTT and look inside. You can then compare it to the pictures on the ndstt.com website.
You can also look at the shape of the microSD holder (the metal thing that holds the microSD cart inside the microSD slot on the DSTT). The front edge of the SD holders are curved on the real ones while the fakes are all straight. It's possible but difficult to tell that from the outside without opening the case, but here's what the holders look like (the red lines show the shape you're looking for):
-Bri
You can also look at the shape of the microSD holder (the metal thing that holds the microSD cart inside the microSD slot on the DSTT). The front edge of the SD holders are curved on the real ones while the fakes are all straight. It's possible but difficult to tell that from the outside without opening the case, but here's what the holders look like (the red lines show the shape you're looking for):
-Bri
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