It seems that researchers at MIT are experimenting with using video games to teach players a foreign language. In the linked study, the researcher in question used The Sims to teach users high school level German.
I think this is an excellent idea, particularly for native English speakers looking to learn a foreign language. While it has become increasingly common to encounter people with at least a rudimentary ability to read, comprehend and even speak English world-wide, it’s often difficult to find fluent speakers of other world languages here in the States. It’ll be interesting to see what other learning scenarios the MIT guys are able to construct along these lines.