I always try (and some years I fail) to keep Christmas low key. I try to stay under $200 for Christmas (and that includes my Dad's present, cause he usually asks to me to buy for dd, and gives me the money).
This year I'm staying far far below the $200. Dd really wants an iPod, and I'm happy to give her one (then maybe she'll let me have mine back. lol). But other than that it's going to be more about the time we spend together, and less about what we buy.
I'm stressed about it on one hand, and on the other hand I don't want to teach my dd that Christmas is all about what we get, and the stress of how to buy presents for others. We make most of the presents we give.
Last year I started a thread here in the SP forum about different craft ideas for gifts. Maybe I'll start it again. We could also list really good sales going on for the hottest Christmas items.
We have a lot of time to plan, 2 full months. You don't have to buy brand new, start searching on craigslist or freecycle of people giving or selling toys for next to nothing. Wash them up, the kids will never know.