Santa is making his list and checking it twice. And Buzz Lightyear is once again the must-have gift for children this Christmas. Although it seems some youngsters will settle for nothing less than a flat screen TV from Santa.

Celebrating their 250th year of selling toys, Hamley's of London makes it their business to know what makes children tick.

Last year the must-have Christmas toy was Toy Story's Buzz Lightyear. Now, with the release of Toy Story Three this year, Buzz is once again at the top of the list.

Gareth Marriott, Gen. Manager, Hamleys Toy Shop, said, "I think people love Buzz because of the character himself, he's like a humble leader and a humble hero if you like and the actual toy, it can do so much. There's the jet wings that come out and sounds and kids just love anything interactive."

Coming second in the Hamley's top three is Stinky - an interactive walking, talking robot garbage truck.

In third place is good old fashioned Barbie - this year returning with added Hollywood glamour thanks to her role in Toy Story 3.

Interactive games are popular again this year, and according to Hamley's the general rule is if it moves children will love it.

For Parenting magazine, Angels & Urchins the Armouron Action Set comes high on their hot list, because it encourages role play.

Popular with younger children is Dave the Funky Shoulder Monkey. He has been flying off shelves all over the country. Dave talks to your child in monkey chatter, dances for them and also lets them know when he's tired.

Folks at Hamley's say despite global austerity measures, demand for Christmas toys remains high and parents are still willing to spend money on the right toy.

At the same time consumer experts are reporting a trend towards more traditional, timeless toys.

Nestled in the market area of London's Covent Garden is Benjamin Pollock's Toy shop. It's been selling traditional toys since 1880.

The shop specializes in Victorian era toy theatres.

Simon Seddon, Manager, Benjamin Pollock's Toy Shop, said, "Playing hasn't changed, the way that children play has never changed. All that happens now is they seem to have - there's a screen between them and their imagination, but the things that they're utilizing - they're still using their imagination. What I find a bit depressing is that they don't have scope to fully use their imagination and maybe that's why things like these (points to toy theatres) have come back in vogue."

So whether it's a high tech or a simple toy that will light up your child's face, the best way to get it right is just to ask them.