Microsoft CEO Satya Nadella demonstrated a new technology for Skype video chatting service that translates different languages in real-time.

Microsoft, the biggest software company in the world, is taking extreme steps to regain its lost position as a technology leader in both mobile and search space. But first the software giant is trying to enhance its existing applications with innovative features. At the Code Conference on Tuesday in Rancho Palos Verdes, California, Microsoft CEO Satya Nadella live demonstrated the upcoming real-time interceptor of voice calls in Skype.

The demonstration of the new Skype feature was carried out by service's VP Gurdeep Pall with a German-speaking manager in Europe, according to Forbes. The conversation was kept short and did not show absolute accuracy, suggesting the feature needs some work before being released to the public. The Skype Translator is basically designed with the aim to connect people across the world speaking different languages in to one network. The feature will actively translate the words spoken on a Skype call into local languages.

Skype is one of Microsoft's core products and has 300 million monthly active users around the world using the service for more than 2 billion minutes of conversations each day. The service is available on a range of devices, from PCs to tablets and smartphones to TVs. The new feature will be seen as a huge development for business users who have worldwide connections and for them communication plays an important role.

The most interesting factor revealed during the Code Conference was the Translator's capability to master different languages over time.

"If you teach it English, it learns English," Forbes quoted Nadella as saying during his speech at Code. "Then you teach it Mandarin, it learns Mandarin, but it becomes better at English. Then you teach it Spanish it'll get good at Spanish, but it'll get great at both Mandarin and English, and quite frankly none of us know exactly why."

The fully-functional Skype Translator might still be far off, but Pall noted in the company's official blog that a beta app will first be available on Windows 8 before the end of this year. But the feature will eventually be integrated on all devices and platforms.

"In our industry, we often talk about pursuing big, bold dreams, and of how we're limited only by the power of our imaginations," Pall wrote. "Skype Translator is one of those endeavors, and I look forward to keeping you apprised of our journey to break down another barrier to human productivity and connection."