How much seating do you need on a regular basis? I would be inclined to get a leather couch, that would sit to the left of the fireplace, facing the dining area. Sofa table behind the couch, with lamps. Nesting tables at the fireplace end, to be used as needed. Opposite, on the right side of the fireplace, a pair of chairs that recline. No ottomans, as I see that being an obstacle for your son. The recliners let you put your feet up as desired, but are not in the way the rest of the time. A nice table and lamp between the two chairs. No coffeetable needed. The tv moves to the stairway wall, where the couch is now. Wall mounted or on an entertainment stand. If there is room for the bookcase beside it, fine, but I have a feeling that wonâÂÂt work, in part because I believe I see the thermostat there. In that case, you could put another chair against the wall for extra seating. with a wall-mounted swing arm lamp beside it, and a narrow table next to it. I wouldnâÂÂt necessarily drywall in the space over the fireplace - it could be a cool display niche, especially if you could add some lighting into the top of it.

I'm not clear on why you don't like this placement? To me, this looks ideal - kids zone at the end of the room with shelving and baskets for storage, TV on wall by windows with couch facing it. You have a nice set up for ease of conversation and looks warm and inviting.

i would not place over the fireplace, that is too high. you can put on an arm on the left side of the book case where the slot is for a smaller one or leave on the wall it is on, then i would give it a larger console. i think i would continue to have the sofa face the fireplace then have two swivels on the right side of the couch so they can turn to the fireplace, the tv, or the couch. i would not even ask about shelves i would quickly have them filled. if that step down gives a problem i think the least expensive solution is a slanted piece of wood shoved against it. well and glued down. if you ever want a little more color or zip, let me know can give you at the least some cool pillowsl. let me know.

You're going to have to give folks more information to work with. A floor plan, dimensions, some photos (including the furniture you want to put in the room), and some idea of how you want to use the room (watching TV? Conversation only?) would give us something to work with.