some more

dimensions drawing

Is there any way you can move the wooden bar or is it built in? If it were not there you might be able to fit in a sectional.

The space is quite large and you have competing focal points with the screen and the fireplace off to the side. For starters, consider some great upholstered swivel chairs in a conversation arrangement so you can enjoy both the fireplace and the large flat screen at your discretion, without your seating making the choice for you as the sofa does currently. For the back of the room, I would create an alternate seating area or game space for other activities in the space. However, before purchasing any furnishing, I recommend getting a professional space plan via in-home consultation or e-design services to ensure you next move is well thought out.

I agree about at least a couple of swivel chairs that would be closest to the screen when swiveled around. Then a sofa that would be across from them, perpendicular to the left side of the fireplace. If you'll need more seating, maybe some comfy and colorful floor pillows could stack over on the floor near the screen.

I see that you have a small kitchen area behind the bar so although the bar could be moved, the current position probably makes the most sense.

I would recommend putting a round game table and 4-6 chairs in the area where the recliner is in the photos. Add some shelves or a cabinet to store games you can play at the table. At our family gatherings we break out the Clue or Mexican Train Dominos and 3 generations play together. It would nice to have that option even if some of the family are watching a movie.

Since you already have some black elements in your theater wall and bar stools, be sure to carry some black across throughout the space. I'd get a durable fabric for the upholstered pieces. The sofa could be a warm beige, but then the swivel chairs shoukd have some punch in a red/cinnabar color.
Add a black sofa throw, some throw pillows in a black and beige Ikat print and others in red.

A large ottoman with upholstered top and wood legs would provide a place to prop your feet up. Put a tray or two on it to hold drinks and snacks so it can serve a dual purpose.

You have a lot of nice space for family fun. Enjoy it!

Thanks! anyone have an example of the swivel chairs you would have in mind?

Just google "upholstered swivel chair" and select images at the top. I kind of like something like the first couple of chairs that are shown in beige or the black one with a beige circle print. There are lots of styles so you can select one that will go well with the sofa you choose. I'd recommend chairs and sofas without rolled arms as they take up space that you'll be a bit short on. Smaller scaled backs and arms will allow more clearance CE to walk around the pieces and still leave space for a small table between the swivel chairs.