Have you noticed how much packaging they put on kids toys these days? With all the tape, cardboard, twist ties, and plastic, it can take most of Christmas day just to get the toys out of the package and then you still have to put them together!
To avoid the frustration on Christmas morning, we always take our kids toys out of the package before wrapping them. We assemble the toys and put any manuals/instructions/warranty booklets in a safe place so they don't get thrown out with the wrapping paper on Christmas morning. Batteries can be inserted and toys can be tested (or played with lol) to make sure you don't end up with a broken toy or missing parts on Christmas day.
The toys are sometimes a little harder to wrap this way (if they don't fit back into the box), but it always seemed odd to me as a child that Santa's elves - who I thought built my Christmas toys - would spend so much time packaging them. Having ready to use gifts just seemed more magical, like they were made especially for me, not mass marketed.
This also helps if your family can't afford all new toys and wants to pass along something they know a child will love, but may turn their nose up at simply because it's not new. If all the toys are out of their packages, then any toy in good condition will not stand out from the rest.