I’m one of the many who don’t know Japanese, yet try to play the games anyways. Like you, I know some tidbits they say verbally and I know basic Hiragana, but not enough to understand the games.
First, there are a number of games in Japanese that don’t necessarily require Japanese to play. The best examples are ones without a story plot. These typically include 3-D titles with the company “Illusion” being at the forefront, such as Artificial Girl, Sexy Beach, Biko, and Rapelay. Thankfully, even the interface for some of these games have been translated, so with the exception of spoken dialogue, it’s entirely in English, so I’d check these games out if you haven’t already.
Regarding translation software, yes, I’ve used it with hit-and-miss success. Not all games are translation-friendly. The best resources are AGTH (Anime Games Text Hooker) and Atlas:
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They’re not perfect and translations will vary, but it should give you a “general” idea of what’s going on. You’ll need to play your games minimized though, which is a shame, since AGTH and Atlas operate off of separate windows. It doesn’t literally take text and plug it back into the game. It just reads the text string on-screen and displays it in a separate window.
Finally, for learning Japanese, I enjoyed using “Let’s Learn Japanese.” It’s a video television course that has been uploaded on YouTube in it’s entirety:
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I know, it’s old, but it’s not like the language is outdated. Give it a chance before you close it =). It’s been VERY helpful to me, since like many others, I’m a visual learner. They take it really slow, giving you a Sesame Street approach to learning while also showing you “normal speaking,” some of the culture, customs/mannerisms, etc. The video course even has downloadable text-books (see third link above). It’s worth noting the lessons and textbooks prefer teaching a romanji approach to writing over Japanese writing, which some people frown upon because it makes you addicted to romanji and it acts as a crutch. I don’t see what the big deal is. Call it a crutch if you will, but I think it’s better to take baby steps and romanji’s a great way to assimilate new people into the Japanese language.
Hope this all helps and good luck learning. I don’t want to say you’ll need it, but… well… you’ll need it =).