I am in the process of finishing a basement playroom space that (despite the dimensions in the attachment) is roughly 12' wide with a soffit dividing the space and a hallway 6'6" wide. Ceiling height is roughly 7'10".

I had planned on putting in 6" recessed lighting (though still torn on 4, 5, or 6) and ran into issues with symmetry, spacing away from walls, and ducts / pipes. I can space lights symmetrically along the walls if I place them 18.5" off the wall. I have read that this is too close, but anything beyond that runs into gas lines, duct work, or joists.

Would placing lights this close to the walls create problems? If so, are there alternatives to basic flood LEDs that would work better along the walls? How many lights would you use and should I worry or think about lighting in the soffit itself?

Thanks for the help!