Here is the reference page from MSDN on SQLCMD.
http://technet.microsoft.com/en-us/library/ms162773.aspx
I placed this command in a batch file in C:\temp as go.bat.
sqlcmd -S(local) -E -dmaster
-Q"select cast(name as varchar(16)), str(database_id,1,0), create_date from sys.databases"
-oc:\temp\sys.databases.csv -h-1 -s,
Notice I hard coded the file name and removed the "" around the field delimiter.
I get the expected output below.
Either the command does not like the system variables or something else is wrong. Please try my code as a base line test. It works for SQL 2012.
Also, the number of lines is always dumped to file. You must clear this out of the file. That is why I do not use SQLCMD for ETL.
Why not use BCP instead?
I have writing several articles on my website.