Aw this seems rather half-assed to me. I hope at a later time they do another one of these with a new and improved Watson. I really want to see a humanoid robot standing on the podium (connected by wifi to the supercomputer) and using OCR and speech recognition. I also think Watson's voice should be more authoritative. It's like they went to extraordinary effort to make Watson sound unimposing.
They're playing a "human" game after all, and they're not playing like a human is fed into the computer electronically.
Only for extremely limited definitions of "understand".
Apparently Arthur C. Clarke and Stanley Kubrick didn't notice this. "As it happened, IBM had given us a good deal of help, so we were quite embarrassed by this, and would have changed the name had we spotted the coincidence." - A.C.C.
Someone would have to transcribe what the other contestants are saying only if Watson would also get their incorrect answers which doesn’t seem to be the case.
How does Watson know when it can chime in then?
That said, I wish the engineers would have implemented OCR technology into Watson so it could see the TV screen, decipher the text question, and understand it -- instead of directly being fed the question. It would have given Watson a nice little title of being'complete'.
Edit: Failed to read the comments lower on the page. Looks like Watson plays by the same rules as everyone else, using a physical buzzer which can't be activated until the question is read and the 'answer now' signal light is activated. I know that another restriction on when to answer that Watson has is that he won't buzz in until he's confident in an answer, while human players will sometimes buzz in figuring they will be able to come up with the answer in the couple seconds between buzzing and answering.
For IBM Watson playing Jeopardy against humans the buzzer reaction time is exceedingly important. The buzzer is an integral, possibly even central, part of the game.