I want to learn japanese by watching anime or drama. Is that a good way?

it may help you too in order to know the proper way they speak and the accents too

Could always try Rosetta Stone...but it's probably expensive. At least thats what I think cause i saw some at Barnes & Noble and they were around $200 :/

How long have been learning Japanese? If you are at the level you can take N1 in July this year, you should be able to understand most of what's being said in the anime and drama. I think you should focus on your text. I heard that N1 tests on grammar that even Japanese themselves may not know. As for me, I'm going to take N2 this year end. I took the old JLPT 3 one and half years ogo. I have been learning Japanese for over 2 years. At my current level, I can only understand around 70% of what's being said. I still have a long way to go if I want to pass N2. I think watching anime and drama help (especially in listening comprehension) but more importantly, we need to study the next.

Umm... I am not sure because the translations from subtitles are not always correct. They say it but it might mean different if you were to speak it to a japanese person. I know someone that watches and she learned some from watching anime but she took a japanese college class. Its pretty hard to learn Japanese I tell you. I suggest you learn slowly in some class than learning from watching anime. Anime is kinda hard to learn from what I have seen I just know some random words like "BAKA" lol.

It's certainly a fun way to learn a few words but you only pick up a few words here and there that really don''t hold up in a conversation! My friends and I have learned a few words and phrases from watching Ninja Warrior and anime like Inuyasha, Naruto, Blood+, and a lot of others. Fun but not very educational. We also have some movies were you can have them speak one language and have subtitles in another. The live action movies are a bit more helpful than the anime, to me at least. And having to watch it over and over isn't fun for some people, but it helps me to get the flow and memorize the dialog and match it to know whats being said. I hope that made sense, it did in my head!