Skype has just announced the release of the Skype Translator preview and it is now open for the public to use. You will need Windows 8.1 (or Windows 10 Preview) for PC or tablet.
The Skype Translator preview for video can only work with four languages for now (English, Spanish, Italian and Mandarin). But those translation barriers are easily broken down, so that you can voice call or video chat in English and you’ll see the translation that the client on the other side can interact with, in a different language (like Italian, Spanish or Mandarin). The words that you speak with a call or in a video chat will be seamlessly translated in real-time. Microsoft promises more language support will be added in the future.

Just updated Windows Store links