It's ironic; clothes for newborns are generally cheaper than actual baby doll clothing. While you're at the consignment store or Goodwill, pick up a couple of newborn onesies and hospital hats for the baby dolls and stuffed bears at home. If you know someone with a newborn, ask for a diaper or two and any bottles they don't use.
Don't toss that old loveseat! Throw a colorful slipcover on it and add it to the playroom. Slipcovers not only allow you to change the look of a piece of furniture, they're easily tossed in the washing machine when those inevitable spills and potty accidents occur. A fresh coat of paint will restore an old dresser that can serve double duty as play space storage. See-thru plastic storage bins are inexpensive and stackable for more toy organization, and clothes hampers are great for stashing plush toys or balls of all sizes. Scatter a couple of pillows on the floor to create a cozy area for reading or a soft cushioned spot for jumping and roughhousing. Finally, drag your forgotten old bed sheet out of the closet and add it to the mix. Kids will use it as a fort, a tent, and for dress-up. It will be spread out for impromptu indoor picnic lunches, hidden under during hide-and-seek, and used as a sled to drag smaller siblings around. That same sheet will be employed to tie up dogs, friends, and little brothers. It will be snuggled under to watch television and thrown into the air for make-shift parachute games.
Remember to toss in a box or two of washable crayons and a stack of paper for coloring. Coloring books are wonderful, but many children prefer plain white (cheap) computer paper because they can get more creative and there are no constricting lines to stay in-between. Once your kids have accumulated a good stack of artwork, allocate a section of the playroom wall to display it. It looks cute, the kids are proud of their accomplishments, and it costs virtually nothing.
Any room or designated area can be a great play space if it's both safe and fun for your children. All it takes is a few minutes of child-proofing and a little thinking "outside the toy store" for creative, educational, and completely goofy ways for kids to enjoy themselves in their own special getaway.