Knockout Toy Chaos
I have found that the Trofast units from IKEA are great for toy areas. They are customizable based on your child's interests with three different sized bins. When my kids were younger, we had large bins for dinosaurs/dolls, medium for art supplies and games, and small for tiny toys like Legos.
For underutilized toys first declutter, then sort like with like (zone). Consider any items the child uses together as "like" items.
Create labels based on age (pictures, words, or both). Make sure labels are easy to change or recreate!
If a child is saying they don’t want a toy anymore, but you want it in a memory bin, put it in a designated memory bin for that child that you store – do not make them keep it in their space.
If you are organizing an entire room with toys, and not just a section of a room: