Hard to say without really seeing the space properly.
I think I’d do the bed by the two windows
And like the sound of closet being the office. But are you able to
Give up a full closet?

search for "pocket office" or "closet office" or "tiny office" -- small etc. -- on Houzz photos

Pocket Office · More Info

how big of a desk is needed. Maybe something like these might work if they are not too small.

Can you put the TV on the wall to the left of the bathroom with the sofa opposite? Then the bed could be by the double windows as suggested...better than by the bathroom door.

I don't know how you would build a wall in here without it feeling off.. Maybe a folding screen could be used as needed instead.

multi purpose? Think about what purpose the rooms needs to fulfill and then think of what is needed to accomplish all that. Can a TV be easily watched inside a closet? How often do you have guests? Do you want to put them up in the same room as paperwork in an office? ( I have nosy guests) What if you have guests who go the sleep early and you like to watch TV late?

Bump!!

Its really hard to see the spaces with all the clutter. can you declutter and take new pictures?

I assume no basement space ?

One bedroom for adults, one bedroom for kid, the third is everything else. Put the office in the closet or have an office cabinet - add locks as needed to either entire office area or drawers with private information. If a lot of room is needed for media purposes, look into getting a Murphy bed or a pull out sofa for when you have guests.

I would probably give the kid the smallest room since the other room is multipurpose. I wouldn’t give up the largest room to be the multipurpose room if it is the only room with an ensuite. I would keep it as the primary bedroom. But those decisions depend on where the bedrooms are in relation to each other and the rest of the house, which ones are en suites and the needs/preferences of your family.

Right

k8cd is exactly right. A work office has to have priority use of the shared-function room. Games and VR are much lower priority.

A brief overnight guest can sleep on a pull out sofa, but a guest should not try to hang out in a work office when the owner is working. Sometimes the solutions vary by circumstance: an overnight guest may be fine most weekends, when on other weekends the guest will be more comfortable in a hotel. It's not one or the other.

This article is good: https://www.houzz.com/magazine/8-twists-on-the-guest-room-office-combo-stsetivw-vs~52514264

Office · More Info

Agree. murphy bed or daybed in the office. you dont say how old the kid is, but hes going to need some space in a small house.

What you really need is organization. Maybe a tv in your bedroom so you can escape the video games.

Also, why do you need a guest room? Might not be a priority.

Let me see if I have this right, your husband has a shared bedroom, a shared living room, has space in the kid's bedroom for his home office and the guestroom as a gaming room? In the meantime, you're considering whether to have the kid share with guests or the home office?

My advice, get the home office out of the kid's bedroom. Put it in the guest room. If Hubs can't do his gaming there, maybe he should give up the gaming or get a job where he can earn enough to buy a bigger house.

Your kid deserves their own space. To sleep in the closet is the stuff of fiction. Think of Harry Potter in the closet under the stairs.

Coming back to (i hope) make it easier for you to think it through.

Three bedroom house and we NEED an office.

We WANT a gaming room and a guest room.

kid in one bedroom, parents in the other bedroom and third bedroom as an office.

Assuming gaming doesnt take place at the same time as work, the gaming goes in the office.

That leaves the guest room. Your choices are: a pullout sofa or an quality air mattress in the living room, or, a murphy bed, pull out sofa or quality air mattress in the office, or, a second bed in the kid’s room. (side story, when my grandmother visited for holidays, she slept in the extra bed in my room. We managed.)

How often do you have guests? we have small cars so rent people movers when my inlaws for England come across. This is much cheaper than owning a seven seater when i only need four seats regularly. Renting a nearby hotel room for out of town guests once or twice a year is cheaper and easier than allotting square footage that is needed daily to accommodate infrequent visitors.

I'm sorry but can't make out what's what with all your said and the photos I see...

You need to post a floor plan with dimensions showing all windows, doors and entryways of the room or rooms you want advice on.

What you do not need is a room for video games, so unnecessary. Get hubby and son out in the fresh air. Put up a basketball net. Buy them some tennis rackets. Join a club with an indoor/outdoor pool. Now you have two bedrooms and an office.

I'm sorry but with just a plan of location of the different rooms in the house without dimensions there's not much input I can give you.

Thanks for sketch. Master bedroom goes downstairs. Kid bedroom goes in smaller upstairs bedroom. Office, guest bed, and game area go in large bedroom upstairs.

It will be much easier to arrange things once things that you know you will get rid of (donate or sell), like the child's loft bed, are actually gone.

In the long run, adding a bathroom door to the landing and closing off the two existing bathroom doors would convert the jack and jill bathroom to a standard hall bathroom. Then privacy for each room would be improved.