Hmm, I'm going to be brave, stick my head above the parapet here...
Firstly, I HATE things like nintendos, wiis, gameboys etc - we don't have any, and I don't intend getting any (ds1 is only 6 though, so I may be being self-righteous and have to eat my words).
BUT, we tend to get bigger things (like say a bike) when they need them, so not at Christmas and birthdays. In fact, I try to do that, and Christmas and birthdays they get things like a new packet of felt tips, maybe a toy, but not a big expensive thing. Certainly now they're old enough to 'know' what's going on (i.e. to anticipate them). Because I'd much rather they didn't have the whole pressure of 'WHAT AM I GOING TO GET FOR CHRISTMAS', analysing catalogues, making lists etc. I'd rather it was a fun family time, with some fun presents to open. Having said that, I do always get them more than I intend to , because I see something they'd really like. Ds1 got a toy Woody for his birthday, (Toy Story) which cost £19.99, and that was his present, and he was SO pleased with it. And I do use birthdays and Christmas as a time to stock up on pens/paints/craft stuff etc.
I think either way can work, my theory is that this avoids them being spoilt because they're not 'expecting' a big present, and also avoids the disappointment of 'that's not really what I wanted' - there isn't the big pressure to get it absolutely right.
Does that make sense? Or will you all flame me and say my children are spoilt???