I have dropped my Tamagotchis, not often, and not from a very big height, but dropping them can have side effects:
If it lands on its front, you can ruin the LCD screen, either by bursting it (the LCD screen appears black), or ruining some pixels (some rows permanently/never light up).
Sometimes, you can damage the chip, and some conenctions may get lost, so some functions may no longer work, such as sound, or IR.
Most of the time, you will end up dentng your Tamagotchi/scratching the paint, adn in the worst of cases, some bits can fall off (a friend lost the glass to the LCD screen adn the IR conenctor plastic when she driopped it).
However, it needs to drop hard to do that. It probably has some method of absorbing some impact, but it obviously can't take too much force. To avoid them dropping, carry them looping the keychain on your finger, or attach them to your belt/lanyard that goes round your neck.