This is where they make some good stuff
Quite impressive.
To be honest I've been quite impressed with some of Microsofts achievements on this terrain. For example; on my WP7.5 phone I have a (free) Microsoft app called "Translator".
It allows you to translate text from stuff you typed using the keyboard, stuff from the camera (pictures where it'll detect text using OCR) or stuff you simply speak into the microphone.
What I've been really impressed with was the other camera option: when I tell the app to translate from, say, English to Dutch after which I point the camera to my PC screen (when I'm typing this comment for example) then I can see the translated text appear on my screen in real time. It gets better: after the first run it will also detect some of the sentences it initially translated directly (one on one) while there are other sentence constructions for it. Those get changed over time too.
As said I was very impressed with this app. Especially since it gets its information from the Internet (obviously but also allows you to download dictionaries so that you can perform translations without an Internet connection as well.
Honestly; there are some fields where Microsoft can really be a trend setter. In my opinion of course.