I LOVE your inspirations photo! Have your considered using a sofa behind the other sofa and and making the bay window area a game table space? I had the cutest game table in my former house and used it to break up some space in a really long living room and loved it.

Thanks aktillery!

I have played around with putting a game table and chairs in the large bay window but just haven't figured out how to make it work with the rest of the space.

I guess one other constraint is the TV. Personally I'd be fine not having a TV at all, but the rest of my family...not so much. The problem is, there's not a lot of wall space to put a TV on.

What is the black rectangle in the middle by the kitchen...is that a fireplace or chimney?

I think you need to start with function....

Do you need two seating areas? Or do you need two dining areas? Or something else? How often will you be seating the larger crowed? Daily or occasionally?

My first impressions of the layout is that the "formal" seating area is tight, esp if there's a fireplace there. It won't be particularly quiet or private as it's open to the tv and kitchen noises. Also not a fan of the asymmetry of the arrangement with the sectional and the half exposed sofa table.

Would a TV over the fireplace work for the formal area and use the space where the tv is as the formal dining area and use the other bay for casual eating?

Or if there is a powder room there where the red line is, can you mount a tv there and turn the smaller bay into a "hearth room" with casual seating and leave the larger bay for formal dining?

With all the windows and light, you may consider adding a partition wall where you have the sofa table to provide more noise deadening and privacy if you think you'll be using the formal seating area more, perhaps as a reading room and library as well as for guests.

Just some thoughts...but function comes first...make the house work for the lifestyle you lead and put the most space toward the activities that are done most frequently.

Thanks Annie!

The large black rectangle is a chimney coming up from the basement boiler. There's no fireplace there. It can't be moved and will probably just be boxed in with drywall.

I originally started with a wall separating the 2 sitting areas, but then DH said he wanted a more open feeling. Maybe I should go back to the wall.

I'm not loving the asymmetry either. But as you said, function comes first and I think the large sectional gives us space for relaxed seating/lounging. I could put 2 matching sofas back-to-back with a game table in the bay, but I can't really picture anyone ever using the game table. Maybe I could put an arm chair next to the sectional to balance it out?

Function-wise, it also seems best to keep the dining table close to the kitchen.

Having 2 couches back to back is not ideal for big groups with multiple conversations going on simultaneously (been there done that.) The table between the couches might help a little, but I think it's still going to be difficult for folks to hear each other.

It might be better to do 4 comfy armchairs in the bay area surrounding a round coffee table, rather than the sectional, which looks awkward with it's back to the other seating area, to be completely honest. I'd probably do a half wall between the two sitting areas, and push the couch up to that. Some columns would look nice as part of the half wall and give your space distinction without total separation. (Alternately, a couch or loveseat in the bay, or even a window seat, and 2 chairs opposite.)

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What do you think about putting the t.v. in the built-ins? This way it could be more removed from the conversations occurring around the dinner table.

Also, I suggest putting a hall in to help insulate the powder room, if possible. This will help people feel more comfortable using it, giving it an extra measure of privacy.

I remember Christopher Lowell always talked about leaving some mystery to reveal the space gradually to someone coming in rather than all at once.

Maybe, instead of lining the left wall of the formal area with built ins, you could use the built ins as the divider between the two areas...on the formal side it can be a fireplace, on the bay side a tv set...or make the fp two-sided so you can see it from both rooms. That will give you a solid wall against which you can put a sofa on the formal side facing the door, and it will give you a better space to arrange furniture in on the informal side in the bay.