Hamburger SV squeezed into the second round when goalkeeper Rene Adler saved two penalties in a shootout win over third-division Energie Cottbus.
Hamburg rallied to tie the game 1-1 in regulation and went ahead in extra time, only to see Cottbus level late for 2-2.
Schalke, which will play in the Champions League this season, became the fifth Bundesliga team to be knocked out in the first round, following weekend losses by Mainz, Stuttgart, Augsburg and Paderborn, while Dresden celebrated its return to the cup competition with a huge upset. Dresden was excluded from last season’s tournament because of fan trouble.
“We failed to apply much pressure up front,” Schalke coach Jens Keller said. “We lost possession too easily, we didn’t keep the ball, we were slow. At least five, six players played poorly.”
Dresden took the lead through a penalty by Justin Eilers in the 24th and Nils Teixeira doubled the lead with a superb volley from the edge of the penalty box in the 49th. Joel Matip cut the deficit in the 78th but Schalke could not score again and Dresden reached the second round for the first time since 1991.
A header by Hamburg’s Heiko Westermann from a free kick by Rafael van der Vaart in the 70th cancelled out a second-minute penalty by Manuel Zeitz, given away by Adler. Van der Vaart then curled in a free kick in the 96th, but Sven Michel sent the match into the shootout by scoring in the 105th.
Also Monday, Heidenheim beat second-division rival Union Berlin 2-1, while fourth-tier Kickers Offenbach upset second-division Ingolstadt in a shootout following a goalless 120 minutes.