VTech makes a good handheld game system. It's called the CyberPocket. They also make the VSmile and the VSmile Motion (not sure if the motion would be good or not..no idea how much Motion it actually requires.) We have the VSmile and it's great for a 3 year old (my dd just turned 3). The games are all educational and come in different age ranges. You can find them used on eBay for about $10 a game. Puzzles, books, crayons and coloring books, fingerpaints, action figures. My suggestion would be to not give him a ton of new toys at once. Maybe one every couple of days, that way when he starts to lose interest in the toy, he'll have a new one to play with.