The Holy Grail of speech translation systems seems within reach.

Microsoft Corporation will release a landmark language translator that will translate multiple spoken languages in real time later this year.

Microsoft, however, didn't reveal the languages its translator will be able to handle.

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A prototype of the device called the "Skype Translator" was unveiled at the ongoing Microsoft Worldwide Partner Conference 2014 by Microsoft CEO Satya Nadella.

Nadella used the Skype Translator to demonstrate a real-time Skype video call between a Microsoft executive speaking in English and a German counterpart speaking in German. The device allowed both men to understand each other in their own language.

Nadella said Microsoft hopes to have the technology ready by the end of the year.

Nadella said technologies such as the vocal language translator are part of Microsoft's effort to "empower everyone to do more and achieve more."

Some tech pundits have described the Skype Translator as a game changer.

Nadella noted that the device jibes with Microsoft's campaign to brand itself as the productivity and platform company for the mobile-first and cloud first world.

"We will reinvent productivity to empower every person and every organization on the planet to do more and achieve more."

Indian media were thrilled by the device which they said will be a great communication tool. News reports noted that India has over two dozen official languages while Indians speak several hundred languages.

Nadella, who was born in India, speaks Telugu and comes from Andhra Pradesh state. Telugu is the third most spoken language in India after Hindi and Bengali.

Skype is a voice-over-Internet Protocol service and instant messaging client developed by the Microsoft Skype Division. It was created by five European techies and bought by Microsoft in 2011 for US$8.5 billion.