The device was constructed by Dr. Eggman, who hid it away in the Hazard Vault some time prior to the game. It had only been tested once before, which apparently ended with Eggman's pants going into another dimension. After Angel Island's fall upon Metropolis, Sonic, Shade and their team headed to the Hazard Vault to get back the Dimensional Buffer, but they had to defeat the Egg Bot in a battle before they could claim it.
Upon Sonic and his team's arrival in the Twilight Cage, the unforeseen trans-spatial frequency on Tails and Eggman's part, ended up jamming the Dimensional Buffer and destroying it, forcing the team to crash-land on the Kron Colony. Tails, however, was able to build a new Dimensional Buffer from Shade's warp belt.