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Most notably, the capsule toy has appeared in the Shenmue franchise on the Dreamcast.
Ryo can use his hard earned cash to collect capsule toys from the various vending machines situation in the Shenmue world. The toys are grouped into sets and include various Sega franchises such as Sonic the Hedgehog, Ristar and Vitua Fighter. Ryo can also collect sets related to Shenmu such as vehicles and objects. If a full set is obtained, it can be sold for a high price at a pawn shop. Capsule toys can also be won in Shenmue by playing mini games such as 'Lucky Hit' in Shenmue II.

Capsule toys usually appear as a form of collectable in video games. This is shown in Super Smash Brothers Melee, where coins obtained in the main game can be spent to get capsule toys of various Nintendo characters. The toys serve no other purpose other than to be collected and admired.  Also, the more money you put into the machine on Super Smash Brothers Melee, the less likely you are to get a duplicate.

The Wiggler Capsule from Mario Party 5. 
The Super 'Shroom Orb from Mario Party 6 & 7. 
In the Mario Party Series, the capsule toys are usable items. Some are power ups you can use on yourself, some steal stars or coins from other players, some let you switch places with players, and some are traps you can lay around the board.

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