How do you manage toys in the big picture?

We just had a birthday with a small family party and now there are TONS of new toys. In the past we have done no gift parties but our oldest is now old enough to want allthepresents, so that isn’t as much of an option anymore.

However, at this point we have more toys than they could ever play with. Kids are in daycare full time so our playtime at home is limited.

Of course I could donate excess toys but I’m trying to understand big picture if there’s something I’m missing besides a constant cycle of purging and new gifts for birthdays, which seems so wasteful and pointless.

What do you do?