Microsoft recently introduced live translations to its Skype application for desktop users. The way this works, is that you can make a Skype call with a user who even if speaks a language, that is alien to you will be able to see the language translated live before him on the screen so he can understand the context and reply to you in his language. The same is then translated to you in your language in real time. This is so much better than having to type every sentence you heard, translating it understanding it and then going back with a reply.
Google Translator is planning to implement something similar with its own Translator application where the app will be able to translate the language in real-time. This feature is set to be introduced in the next major Translator update. The difference here is that, you would be able to talk to the application in your language, which on detecting it would then translate it and give you the textual translation of the language you have selected.
Not just this, Google may also bring in another application which will be able to use the camera to detect the language written and then translate the same in the language that you can understand.
Via: Android Central