Well, its here. The Universal Translator
This is exciting news.
They are only starting with a few languages and its through Skype, but I see a not-too-distant future where you have an app on your phone that you can use to communicate with people speaking a different language in real-time. Initially I see it as: you say something in your language, it gets translated and played through the phone's speakers, the person you are talking to replies in their language and that get translated back to yours. With a little it of specialized hardware I don't see why the sentence by sentence process can't be improved to be true real time, word by word.
"In general, living kills you..."