That's so mean! My sister and I were not the favorites on my dad's side and it hurts your feeling when you're a kid. My grandparents were the same way, the kids they liked better got better gifts.
It is hurtful. My mom died nearly 14 years ago and they still remember how sweet she was. There won't be many fond memories for my MIL I'm afraid.
My mom is so careful to be equal with my kids. She doesn't want anyone to feel slighted. 

She doesn't like my dad (her son) very much, so she took it out on my brother and I. I played soccer and softball from elementary school through high school. She never came to ONE of my games or tournaments. On the other hand, my cousin (dad's sister's daughter) is 12 and plays on a traveling softball team. My DGma goes to EVERY game and tournament that my cousin is in - regardless of the distance. She'll go up to Minnesota (easily a 6 hour drive) just to watch her play a softball game. 
I'm sure my parents have favorites--favorite kids and favorite grandkids. My mother talks endlessly about my Dnephew, endlessly. She rarely talks about my kids in my presence(or theirs.) However, when it comes to gifts, birthday money, etc. she is even-steven. She doesn't always remember to actually *send* the gifts or money, but eventually she gets around to it. We live 400 miles away so naturally Mother can't spend as much time with my children as she does with both my sisters' children. But other than the constant play-by-play about DNephew, she is very fair with her kids and grandkids.



