The screen capture you included looks to be correct if your parameter was in fact pour points (as oppose to a stream link raster); each pour point generated a contributing watershed basin.
If you want to run the a continuous watershed model across the region then you should use the stream link raster as your second parameter in the Watershed tool. To create the Stream Links raster you first need to delineate a stream network of cells with highest accumulation; I use the Raster Calculator and SetNull function:
SetNull("flow_acc"<100000,1) for example
Once you have the Stream Raster; this becomes the input into the Stream Link tool. The output from the stream link tool is what you use as the input into the Watershed tool "Input Raster or Feature Pour Point data" parameter.