I got this project as far as the very early design stage. I've always been sorry I couldn't convince the execs to let us finish it.
Going the other way around, English - > Japanese or English -> Russian for example, would require additional guidance to explain the new characters.
I've thought first person games could be useful for self improvement in lots of other ways too. Such as getting comfortable with public speaking, or social anxiety in general.
For language learning, this might sound silly, but I've also thought a first person role playing game where you're a baby and everyone speaks to you like they do to babies in the language you're trying to learn. (My pet theory is that children aren't necessarily way better at learning language, but it's more how people interact with them: speaking slowly, using small words, telling them what they're doing, etc.
I do like the baby sim idea. I know some language learning systems go with a very gradual immersion in a similar way, and work in children's books and television as part of it, but I don't know how effective it was. Sounds like it should work well.
https://www.sparx.org.nz/index.html
Currently has an unuseful page about restrictions for anyone outside NZ.
Characters would greet each other and converse in their native language, and the bilingual characters would help smooth this out. For example you could ask a bilingual shopkeeper "What does <word> mean?". If you say "Hi" to somebody and they say "Bonjour" back, it's not hard to figure out what they mean, and conversations would escalate in complexity as you progress through the game.