I wouldn't be too worried about this "translator".
Sharp and IBM Developed Small Voice-To-Voice Translator
Sharp will introduce a small handheld device that can translate spoken japanese into English and vice-versa.
This is similar to the Sony PSP Talkman. I assume the new Sharp translator is more sophisticated. It runs IBM speech recognition software that is normally run on PCs.
The US military has been using a PDA-sized device called Pharselator since 2003.
Sharp plans to introduce the device by the end of the year at a price of around 60,000 yen (~$508).
More details on Nikkei.Net (Subscription). More Translators.