We are fortunate to have a dedicated space that serves as the kids' playroom. It's in the basement where I can close the door and walk away if I don't feel like picking up. It's wonderful.
We purchased these drawers years ago from Ikea. They've always worked well because they are so deep - you can store a lot in them and have room to play on the top, too.
I used some 2x4 shipping labels to print the pictures and words of the toys in each drawer. I simply opened up each drawer, took the picture and pasted it into Microsoft Word.
You can also see how I transformed a closet into a changing station and our coat closet into a mini-mudroom.
Head on over to The Shabby Nest and The Pretty Organizer to see more creative ways of tackling kid clutter.