How about a small banquette seating arrangement in the corner under the windows with a round table and a couple of parsons chairs for the game area? You could then use a loveseat in place of the sofa and an opposing pair of chairs (it would be nice if you could float these into the room so the traffic pattern doesn't cut right through the seating but I don't think you have enough depth). Or you could have the loveseat face the 8 1/2' wall, again floating it into the room, with the back facing the dining room (put a narrow sofa table behind it). Otherwise I would agree with Teacats that a sectional in the corner would be another option.

Great, thanks! I would use a round table that can extend to oval when you have company in the dining area, right over near the kitchen. One chair backing into the corner, rather than a chair with its back to the kitchen door. The desk can stay right where you have it in this photo. Sofa on the wall with the windows with a side table at each end. Two chairs across from it with a table between them. I sketched a pic but can't post comments on my phone, boo :(

Fun space. Interesting low stools with a picture leaning against wall and vintage riding boots. Textured, bold color and interesting lines for your choice of stools would be one of many options. A lucite table with artwork or sculpture. Stool with stacked books. Lucite table with stool underneath or riding boots. Lots of options. Not sure your office decor but if you keep door closed treat it as receiving area for guests. Simple and understated.

Is there an eat in kitchen or would the dining space be the all-the-time eating space? I like Judy's layout if there is another more casual eating area (breakfast/lunch). traipsing across living space (from kitchen) for every meal doesn't seem functional. That said, walking into your fireplace area as a LR isn't ideal either. I think it could have 2 chairs and be cozy but the TV and living space would have to be across the way. It's a beautiful looking home.