Appreciate the responses, this site is always so helpful in generating ideas. cabinbuilder -- a corner fireplace would be nice, but I don't think it will work here. The long outside wall will be taken up with two large windows and a frenchdoor to take advantage of natural light -- which doesn't leave a lot of wall space remaining. We're also trying to tap into existing gas pipes/vents which only gives us the 2 end walls. But will noodle it around... Love the idea of cabinets near the game room. beaglesdoitbetter -- What beautiful rooms -- we have a similar fireplace to the first in our great room with a black granite surround. So hubby wants to do something quite different in the basement. LOVE the fireplace in your bedroom -- it's so unique. caminnc -- I did also think of candice olsen -- she does a lot of beautiful basements -- I will check out her stuff fnmroberts -- I'm going to try to get to the fireplace shop near us for some ideas -- good thought. I need to have tile for mudroom, paint and carpet choices by Monday so scrambling to try to get the full picture. Afraid if I delay the contactors at all, I may not see them again for a month. Good for you to do your basement yourself -- you do beautiful work. I will ask about sound insulation for utility area -- I hadn't thought about that. I made the mistake of telling my husband he could do whatever he wanted in the basement -- now having a hard time keeping my word on that. We usually have different visions but can come together in the end. People complain that their husbands don't have any opinion on decorating -- mine definitely does. Luckily he has good taste!

I agree with having fun. Can you float a sofa facing into the room? Small furniture ('apartment size') will work best. By using an ottoman as a coffee table you will add seating in a pinch. How about a storage ottoman to stash toys in a hurry? What color furniture are you considering? You could go neutral with the sofa and add color with chairs or visa versa. A floor or table lamp will soften the look - are the ceiling lights dimmable? How about a area rug to add comfort? It needs to be large enough for the room. You can have a broadloom remnant from a carpet store cut and bound to your measurements for a modest price. This would be a way to add some color to the room. And I'd lower the art work a few inches. Closer to the height of the TV.

Thank you for all your suggestions! All were great ideas! So this is what Im going to try. Leave the current setup in front of the TV and just bring the sofa in a bit more to make space for sofa table and then creating another seating area with 2 chairs flanking the fireplace. Also move the chaise near the bar with a floor lamp. Perfect! One last question, should i place a small rug in front of the fireplace area( maybe a round one) or leave it?

Yeah, I know it’s a tall order to come up with something that accomplishes what I want but I figured I'd see if others on Houzz had some ideas. Both sectionals that I'm considering are pretty spacious. The first one is 144” x 79” and the other is 120” x 110.” msteezzy - here’s a picture of the space you asked about.