DD plays in her room and her toys generally stay in there. We have an outdoor undercover area that she plays in too, but unless it's an "outside" toy, like sandpit things etc, they are returned to her room. Our loungeroom is our only living area of the house, she brings her toys out into it during the day, we play with her duplo blocks in it, lots of things, but we do try to return everything to her room each evening. We have a small house and if we let the toys stay in the lounge, I'd feel a bit overwhelmed I think. I like things to be tidy and orderly. DD is very happy playing in her room, but she knows it is okay to bring her toys out into the lounge.