We live in the same state as my DH's family. He has 4 siblings, 3 of which have kids. Altogether there are 12 cousins. They range in age from 3-16. We used to buy for each kid, but a few years ago we decided to do secret santa for the kids. Which we used to do for the adults, but stopped long ago. They all put their names in hat and each pick one. This way they learned about giving as well, they loved to help pick out a gift for whoever they chose! All of these kids have more than enough, so this cut down on extra clutter as well. Well, this year, my DH's brother and brother in law are out of work (construction), so we decided to stop this practice as well. What we did was play games on Christmas day (we get together at my MIL's). Those of us that could bought inexpensive "prizes". We made sure each kid got a prize. They had a ball as did the adults! We had "guess how much candy" in a small jar and a large jar. The adults even participated. We played "pin the star on the Christmas tree" we were laughing so hard when the adults did it!! It's not so easy to be spun around and then sent forward, most people were nowhere near the tree!! Beleive me, the kids never missed the gifts. Money is tight for everyone nowadays and this saved us all some extra cash and it was fun to boot.
Oh, and what we used to do for the adults was a white elephant game with a price limit, which was always fun, but we even cut that out this year and didn't miss it either.