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The news articles mention the enthusiastic response of students, but they don't really do the software justice (in my opinion); the demo video, on the other hand, makes for some very interesting watching. It doesn't look like there is anything inherently groundbreaking about what is actually being done, but rather how it's all put together. It looks like a system than is well-planned, designed to engage students in a modern context, and most importantly, it is complete.
I've tried a few language learning software packages over the years, and so many of them are lacklustre and boring. They are little more than digital flashcard systems, maybe with fairly weak excuses for games or quizzes. "Language Perfect" certainly looks different (although I haven't been able to actually use it myself). The interface looks clean, slick and responsive (which is very important for engaging today's youth), the automated feedback seems more interesting and useful than just "right/wrong", and the system as a whole apparently motivates students with a competitive edge, using points and online scoring systems.
That said, this is the first flurry of activity we are seeing. As this dies away, will we see it having a steady presence in education? Will it maybe even spread to other parts of the world? I'll certainly be keeping an eye on it to find out.