My two DD's share a small bedroom, they have an individual Barbie doll each but pretty much share the clothes for it and share the Ken doll too
these live under older DD's bed in a basket, even though different outfits were gifted individually for birthdays. They also have a large basket of books in the bedroom. No other toys live in here apart from some sticker books they're currently sticking. Five year old has her little teddies on her bed. They share a chest of drawers with their clothes in it. We have no wardrobes in our house in either of the two bedrooms in this house.
They share a wooden kitchen and enamel cookware and wooden Haba fruit and veg (beautiful stuff that is!) My five year old has her own selection of small teddies and they share their Bamboletta dolls, a girl and a baby. They share the wooden doll stroller. The stroller lives in the front room downstairs. The wooden kitchen lives in the hall way upstairs neatly in the corner outside their bedroom door. On the floor next to this there is a wicker dolls cot with baby blanket and thei basket of wooden play fruit/veg. The Bamboletta's live in this when they are not being played with (They get played with ALOT, they are amazingly beautiful dolls and seem to be part of the family practically!)
Their play silks live in an old fashioned basket downstairs (they often wrap babies in these, tie them on as cloaks etc) they have a vintage red enamel play till, some shells and stones, a basket of tiny cotton bendable dolls with clothes, a box of play doh and their box of art materials. They also have a box of Lego, a folding wooden dollhouse with furniture. This all lives in a toy cupboard in our second downstairs reception room where our sofa is and hopefully, soon, a wood burner!
This is ALL the toys they own.
Living in a house that is just over 500 sq ft we physically can't let the house be over-run with toys as it just wouldn't work.
At Christmas/birthdays not all the relatives buy presents but if they do, they buy clothes that are needed. This got sorted out a long time ago. There is no way I could have coped with random toys being gifted. It wouldn't have worked for our way of life and the chikdren know no different!
They share pretty much everything as I find this cuts down on arguments. We purposefully gift toys to both our DD's for this reason apart from their Barbie bits and pieces. As we gave them those separately for birthdays, they have argued over various Barbie boots/outfits again which puts me off gifting toys to individual children if that makes sense! If it is a shared gift they tend not to argue over it.
I hope this helps someone.