Seventh Generation Compatibility
When the first two generations of Pokemon were released, you were able to Trade Pokemon from the games in order to try to "Catch Em All". In newer games, you are able to transfer your Pokemon from one generation of games to next. However, you were never able to transfer the Pokemon you obtained in the first Two Generations, including Pokemon Red, to the Third Generation moving forward. There was break in the technology, and the Pokemon Company was never able to fix the issue back in the day.
But now, with the release of the Digital Version of Pokemon Red, you can actually transfer the Pokemon you catch to what will be the newest Pokemon Games of Sun and Moon that will later be released in 2016. The Pokemon you catch in the Digital Version of Pokemon Red will also be compatible with the Pokemon Bank Application on the 3DS; however, they still can only be sent and received by Pokemon Sun and Moon. These Pokemon cannot be sent to any Sixth Generation Game (X, Y, Omega Ruby, Alpha Sapphire).
Now trainers finally have a way to play with their Pokemon they once were able to catch to the newest Pokemon Games.