In our house as I am sure in yours, we have toys coming out of our ears.With each child comes more toys! My husband really spurred on this idea when I was pregnant with Noah, and having a tough time keeping a handle on the cleaning. You would walk into our house and just see a mountain of toys everywhere. I always did keep some things up in the closet for special times, like puzzles, Legos, and Play Dough, but it was not enough.
The way we do it in our house, is that we have a couple of baskets of toys up in our closet (out of site from them to see). I usually try to rotate every month. There are a few really great things about doing this. One is it helps me clean out and de clutter every time I do the switch over.It is amazing how many McDonalds toys, and broken pieces end up in the toy box. The second thing is, that the toys are all new again to the kids. They seem to play longer with them, then we we had them all out at once. Finally, it is of course easier to clean up when you have out half as many. I have really loved doing this for more then a year now. I recommend trying this out.