There is an AR translator app "Translate Now" that translates objects and text in Augmented Reality. I think it can create an immersive language learning experience for students to see translations placed in the "real world" around them. This is the appstore link: https://itunes.apple.com/app/apple-store/id1348028646?mt=8

I do believe that language learning can improve a lot using new technologies such as AR and VR. VR experiences as you described above can really impact how students aquire new skills.