What do Pokemon do in their Pokeballs?

[HeartRabbit]

I think they go into a dreamlike state. Or they become 'energy'. Hence why some Pokemon are harder to catch then others.  

[Felix Kristanelo]

Seeing as how we can store them in computers, they are probably transformed into data/energy and put into a sort of stasis. However, pokemon that you have with you are still affected by status effects suffer said effects suggest that they are not entirely in a stasis-like state while inside a pokeball...

I don't know where I'm going with this. Maybe it's like their own portable bachelor pad where they hangout until you chuck 'em out.
I base this on the fact that the Luxury Ball ups friendship. Kickin' it in a killer hotel suite.  

[NejiHyuga900]

Maybe they party inside their balls. Or not. LOL  

[Eclipse13579]

Judging by how psyduck and wobbafett act, I think they plot new ways to get out! xd  

[Dark Scarlet Sprite]

Felix Kristanelo

Seeing as how we can store them in computers, they are probably transformed into data/energy and put into a sort of stasis. However, pokemon that you have with you are still affected by status effects suffer said effects suggest that they are not entirely in a stasis-like state while inside a pokeball...

I don't know where I'm going with this. Maybe it's like their own portable bachelor pad where they hangout until you chuck 'em out.
I base this on the fact that the Luxury Ball ups friendship. Kickin' it in a killer hotel suite.

Haha I agree with the second part of that. Seeing as luxury balls and nest balls do up friendship.  

[Orrun]

This idea is thrown up in the air way to much lol.

Simple answer-this

http://www.youtube.com/watch?v=CYPP8On4XAI

Oddly, that is only a great ball...what would an ultra/luxury/master ball be like??? (one man can only dream...or Pokemon...lol)

So, Felix Kristanelo you were closest saying it's like a bachelor pad lol.  

[felinoel]

According to the anime and the manga, they are conscience and watching everything... kinda creepy