Capsules, were created by an unknown person of the Yucon Corporation, for the purpose of making objects compact and easy to transport.
Throughout Pokemon DX, numerous objects, from airskis and hovercars, to entire homes, and even organic corpses and house plants, have been seen contained in capsules. The only things that have never been shown in capsules are living sapient organisms. The Janitor of the Yucon Corporation explains that he used to work as an inventor and once invented a capsule that went inside another capsule, and that the results were catastrophic. Capsules are distributed by vendors throughout the earth, although the pricing varies depending on what it contains. It is possible to have an object adapted to turn into a capsule.