Center the rug with the fireplace. Take the bookcase out of the left corner of the room and put that in the space between the kitchen and FR, where the console table now sits. Move the sectional down toward the fireplace, (after centering the rug), add an end table to the outside of the chaise part of the sectional. Someone sitting there wonâÂÂt want to move to get a drink off the coffee table. Be sure there is a lamp there as well, to light that corner of the room. Move the armoire to angle in the corner where the sectional was sitting originally. Use it for storage, perhaps add shelving or even a pull-out shelf for a computer center which can be closed up and put away. The piece is very nice, and gives good height to balance the fireplace and high ceilings. For now, try the console on the wall to the right of the fireplace, and place the new flatscreen on that. Later you may prefer a more substanial cabinet, which can hide other components and store DVDs, etc. If you do that, then try the console table behind the part of the sectional that has its back to the kitchen. Add a comfy upholstered chair in the corner, a bit closer to the fireplace, where the armoire was, along with another small side table and lamp.

sectionals are rarely recomended. how many of you are there on a regular basis. will you need a table and chairs for games?

The door is to the backyard yes. I am definitely debating between the last two. The sofa facing the tv is comfortable for viewing but the fireplace looks best with the two chairs framing and everything fits. May move the sofa table behind the couch when we get an actual tv stand. You guys have been a great help. Side note how close can things go to the fireplace. Example can there be drapes on those windows or would that be too close?

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?