Were you planning on neutering him before the age of 6 months? Up to that time, testicles can still drop on their own...although they're usually dropped by about 2 months. A lot of vets won't want to neuter before 6 months if this is an issue (most folks don't want to neuter before 6 months anyway).
But you do want to get that testicle out of there so that it doesn't cause problems later on....and, yes, it's more invasive.
If his testicle truly doesn't drop, the breeder should be notified. This is something that should keep a dog from being bred (your dog)....though how a breeder reacts with the parents is unknown to me. I presume the sire wouldn't be bred again by a reputable breeder but I don't know....I can't remember if there's a chance it's anything but inherited from a parent, if there's a test for the sire, etc.