Nuance, the company behind Dragon Dictation, bought out Swype almost three months ago, but the results of the deal haven't really been exposed since. No longer -- Swype has just been updated with a "Dragon Flame" key that, when pressed, initiates a voice-to-text system provided by none other than Dragon Dictation. In its current form, it features support for French, Italian, German, and English, with Swype representatives claiming more languages are on the way in 2012.
Additionally, Swype's language modeling algorithm has been improved. What's that mean? In the company's words, this will "increase the accuracy of the suggestions we offer (such as knowing that you mean 'mosh pit' instead of 'mosh pot')." The system analyzes your writing and shapes its predictions around the context of your sentences. According to Swype, this will bring about an increase in prediction accuracy of up to 40%, and though it's currently enabled exclusively for English, French, Italian, German, and Spanish, support for more languages is "coming soon." Impressive, no?
Finally, this updated version of Swype allows its users to download new languages from Swype's Setting window (assuming, of course, that they're supported).
The update has already begun rolling out, and should be available to all Swype users within the next 72 hours.
Source: Swype forums