Twice a year Target has a huge toy clearance, this occurs typically mid-January and mid-July. I have used it the past two years to buy the majority of my toy purchases for the year for birthday presents and Christmas presents. I usually wait until everything is marked 75% off and it makes me feel like the toy prices are finally reasonable.
I was at Target today and my toy department has 3 rows and all toy end-caps filled with toys marked at 30% off. There are boardgames, baby toys, Toy Story 3 toys, and all sorts of toys for boys and girls. The percentage off will slowly rise until that blissful 75% off day arrives and just in time for me with 3 kids' birthday parties in February.
To make this deal even sweeter, save this Hasbro rebate form. If you purchase $20 of select Hasbro toys between 12/25/10-1/31/11 you can submit and choose a free toy to receive. You can submit this rebate 5 times. The free toys can be added to a birthday box or might be nice for an Easter basket. If you are already spending the money at the toy clearance, this is just an extra bonus!