The new Cyberpunk 2077 show on Netflix does something like this. For some characters who are speaking in a different language, the regular subtitles are replaced with text placed “in” the scene just like how it appears in the game. (When outside of a conversation, if an NPC speaks in a different language, the text is displayed near their heads like a speech bubble without the bubble)

I had no trouble with this in the game, but in the show it was very distracting. Probably because in the game I could change where I looked to focus on the text of I wanted to.