No! It's not a joke.
Take a look here: http://msdn.microsoft.com/en-us/library/ms186939.aspx
Character data types that are either fixed-length, nchar, or variable-length, nvarchar, Unicode data and use the UNICODE UCS-2 character set.
And also here: http://en.wikipedia.org/wiki/UTF-16
The older UCS-2 (2-byte Universal Character Set) is a similar character encoding that was superseded by UTF-16 in version 2.0 of the Unicode standard in July 1996.