When we began downsizing from our "big" house to get ready to move tiny, the kids' toy collection was one of the first things we tackled. We've never had tons of toys, but if you're a parent, you know how those things multiply....
We started by tossing the junk. McDonalds toys, puzzles with missing pieces, headless barbies, random mismatched pieces, etc. While I hate just throwing things out, these weren't even worthy of thrift store donating.
Next we sorted through everything and chose 3-5 "sets" of toys to keep. We sold or donated everything else. We lived in our house for another month after that and watched to see which toys the kids played with most. Before we moved into the bus, we narrowed it down once again and we've done so once more since living here.
When we were deciding which toys to keep, we tried to focus on open-ended, versatile toys that both kids could play with. I also wanted to only keep toys that belonged in set. Instead of 10 small bins of toys, we wanted 3-5 larger bins of similar items.
Duplo: We love our Duplo collection! Abram and Lulu each got a set for Christmas last year, but other than that, it's all been found at thrift stores. I love that it's easy to add a set if we choose to, or get rid of some if it feels like too much. They don't need tons to play with, and there are tons of ways they can play. Lulu likes to build towns and buildings, Abram does tall towers and trucks. Sometimes they use the blocks as pretend money or food. They've played with it on a quilt outside and when it gets dirty, I throw it all in the bath with them and it's good as new!
Dollhouse family: Lulu got this Melissa and Doug family for Christmas a couple years ago and it's been a favorite since. I found a huge bag of furniture for them a while back and they love it. They haven't played with any of it a lot lately, and while I'm tempted to get rid of it, I wouldn't be surprised if it becomes popular again when the weather gets worse.
Playmobil: We have a mix of the larger, toddler sized Playmobil and the small pieces as well. Abram loves the trainset and I love that it's simple enough for him to put together himself. Both kids love setting up scenarios and there's a good variety of people and animals.
Rainbow blocks: I love this set! It's been a favorite since we got it several years ago. There are a million different ways the to play with it: building towers, bridges, ramps, tunnels, houses, etc. They are used daily and stack up neatly so they don't take up much space.
Castle: This is one thing I really wanted to get rid of, but Lulu was set on keeping it. We really didn't want to force her to get rid of anything she didn't want to, I would hate for her to resent our home because of something like that. Instead, we let her have a say in almost everything we got rid of. We agreed on almost anything, except for this castle (which she does play with a lot!) and her gigantic doll, Wencelas.
We also have a basket of stuffed animals and dolls that I'd love to narrow down, but most of them are special (a couple were mine as a child, a few were handmade by family members) and played with often.
Other things: we had a huge book collection when we moved in. We've since gotten rid of at least half of them and instead we visit the library at least once a week. We're still working on finding a good way to store our books so that they're easily accessible for the kids, but not in the way all the time.
We have a huge fenced in yard that the kids spend hours playing in each day, going on adventures, playing in the hammocks, searching for treasure, etc. I know this won't be as possible during the colder months, but I know we'll figure out a way to get them outside!