Deokishisu
Mr. Magius
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Pokemon.com answered a mailbag question years ago that was this very topic. They basically said it was a mini-habitat for the Pokemon inside. My guess is that since the Pokemon is converted into energy, its consciousness is kept going and the Poke Ball's circuitry gives it a VR environment to keep it happy or something, which is where the habitat comes in. If their archives from that long ago are still intact, I'm sure one could find it.