IMo the first thing is closed storage for all the kid stuff.Enclose all those arches with that type of storage it will always come in handy even after the kids do not need it. I love solar shades for windows they keep out the heat and the dmaging UV rays but let you keep the view . If night time privacy is an issue then use drapes with the shades . Then go looking for a really large piece of art for that large wall.

Start with a rug and a floor plan. That will make everything fall into place.

Are your children too small to play with their toys in their room or the basement?

You'll have to decide if you want to keep just the small TV or if you want to take advantage of one of your walls and hang a much larger screen TV

The room has some formal details but your furnishings are casual. A patterned contemporary leaning oriental rug might be a good solution to bridge the gap between the two styles.

I’d consider drywalling over the large arch, and turn the two smaller arches into one recess for the TV, with a storage cabinet for toys underneath it.

I’d add some dark brown into your pillow mix to pick up on the color of your wood shutters. A much larger rug is needed for the scale of your room.

You could frame a section of wallpaper mural instead of purchasing large art.

Divide the toys in thirds. Keep one third out for play, hide the other 2 batches in bins in a storage area/garage. Every 2 weeks, rotate to a new batch.

First, you need to change the furniture arrangement. Budget fix to try it out....Pull your sofa forward, towards the fireplace, and away from the window wall a bit. Do the same with the rug, and chair. Then, place all the toys along the back wall, behind the sofa. That way your room takes center stage, rather than the toys. I would also get a low cabinet, with the tv set on top. Add a sofa table, behind the sofa, on the window side, with two lamps and decor - and disperse some plants in the room to add softness. Add a large, square, upholstered ottoman as a coffee table - kid friendly and it would help to define the seating space.

I agree with @Maureen and @Sammie J that they toys need to head to the back of the room and the furniture needs to come more front and center.

If you move the toys to the back you will have a nice long wall to work with and you can likely get bigger more stylish closed storage pieces -

right now, the toys are tucked in all these small spaces up at the front of the room with small open shelves and that's why it seems so jumbly I think

My son moved the sofa closer to the TV, which divided his living area to create a separate play area. They moved the open shelving behind the sofa where it was easily visible to the children but hidden from the rest of the room. The children liked having their own area that was close to the adults but still their own spot. Sometimes a play tent was put up there too.

Your colourful rug looks like the right size for the area behind the sofa.

Sorry know dark pic but took rq. I know most are saying to either divide or move toys to back wall. I used to have the couch closer to tv and bc of it being a sectional piece it was almost too close to tv and toys fit just enough as being behind the couch vs a play area for the baby and toddler. I thought of turning the couch around and tv on other large wall but I was told this would take away from the flow of the hallway from the front door. Like boom back of couch is right there.

You may need to decide whether improved toy storage is worth changing out the sectional for other seating

Please make a measured floor plan of your space. The original photos seem deceptive. Your overhead shows a smaller space to work with, I think. What are the measurements of the room?

So the long wall with windows is 17ft and the back wall is 15ft. This is not including the weird corner of the room. The couch is 9 X 11 ft

Open to suggestions but I think maybe getting rid of the toy storage cabinet by the windows needs to go completely. We’ll keep the one under the tv for now, and maybe getting the sofa table on long wall with some lamps if we move the sofa closer up.

Pull couch up more

Do your children also have toys in their rooms or are the toys mainly kept in this room? It may be helpful to go through all the kids' things and keep only what they're really playing with... I see multiple ride on toys that look to be the same basic size and serve the same basic function... do you need all of them? Perhaps you could keep just two- one for each child for those times they just can't share- and let the rest go. Speaking from experience, it is so easy to get overwhelmed by kids' stuff! For me, the less of it there is overall the less stress it causes all of us, kids included. When kids were younger we only kept two baskets of kids things in our family room- one basket of toys and one basket of books. Everything else was kept in their rooms. Of course they brought things out of their rooms but they also took those things back every night before bed. So perhaps reshuffling where their things are kept could be helpful in making this room more enjoyable for the grownups and less like a daycare center (as you said above).

So to start small I’m gonna get rid of the cabinet of toys and take upstairs where more of their crap is, I just got rid of 3 bags. Sheesh! Anyway I got a new rug… I think I have a thing for blues. But I don’t want to over power with blue since I already did that with the rug. Any suggestions on pillows and art choices. I was thinking maybe 8 frames of black and white pics? Idk.

This looks like a cozy family space that could use a large ottoman. I think your idea of black and white photos would look great. Sorry for the messy visual!

This is from Wayfair.