How many do you have?
Considering we have three children, not too many. Still too many for my liking, though. My older children - 7 and 9 - rarely play with their toys. On the rare occasion they're inside, they're playing videogames or reading.
Are they sorted into categories or are you more of a toy box person?
We have large, square plastic bins from ikea that have easy to remove lids. We have six of them. The toys are limited to those six boxes, aside from oversized things that have to sit on a shelf above them. When Christmas or birthday comes around, we purge the toys that haven't been touched in a year, to make room for new ones.
Do you rotate? If so, how much do you have in storage?
We rotate toys for the littlest one, who is a year old. I have a cube storage unit in her room and she has four small baskets of assorted toys. Every now and then I'll gather up all her toys in the living room basket, and switch them out for another basket upstairs in her room. This keeps her from getting bored with them. I do need to go through them and start pulling out the stuff she's clearly outgrown, though!
Any must have's when it comes to toys?
Board games. Always a classic. When the kids DO play with toys, more often than not they're asking me to play a game with them. My experience is that all other toys quickly outlive their usefulness. The kids play with them for a week or two, and then ditch them. The only consistants seem to be our Thomas trains, which we've had for nearly 10 years and have lived through three kids and have been WELL played with, and my daughter's doll house, which used to be mine and all of the kids play with.
Do you allow your children to take all the toys out at once?
I really prefer that they not do this, but it does happen as I don't supervise the older two when they play. Generally they're good about playing with one thing at a time, and it's only when they have friends over that EVERYTHING gets dumped. I don't really mind, as I often find them "combining" toys, which I don't discourage. Because we keep the toys to a minimum, it's never the end of the world when the bins get dumped. We can clean it all up in half an hour.
As a side note, I USED to think that my kids had too many toys, until we went to a friend's house this weekend for their son's birthday. Holy cow. TOYS EVERYWHERE. On every floor of the house. On every surface. The child is two, and has more toys than my THREE children, combined. I was floored at the amount of stuff! Walking through any given room was dangerous, as you had to tip-toe around toys and pray you didn't step on one and hurt yourself (or break the toy!) I helped one of my children find the washroom, and stumbled upon the play room which had an entire wall of shelving filled with about 20 more bins of toys. INSANE. I would go mental, lol.