Those are called bulbous bows. They develop a pressure zone generating a wake that runs completely contra to the bow wake itself, neutralizing the wake height therefore reducing the ship's drag.
Here is an image of Titanic (no bulbous bow) compared to MS Oceana that does have one:
And here's a closeup of Oceana's bulbous bow during optimization stages. The pressure zones are colored as Blue with an underpressure and Red as an overpressure.
The size of the bulbous bow depends on what the optimal speed of the ship is.
On Oceana, for example, the bulbous bow works best at a speed of 30 knots. If Oceana sails slower or faster, the wake it creates becomes either longer or shorter therefore resulting that the wakes not matching properly anymore.
http://en.wikipedia.org/wiki/Bulbous_bow