The furniture seems a bit over-scaled. Not sure what is the size of the room, perhaps have 2 groups of seating area might make the most use out of this space.

The arrangement is very cozy. It looks like a room where people talk and enjoy each other's company. Less bulky furniture might open up the room a bit, but if you're curling up in front of the fire, it looks very inviting.

What other walls do you have to work with? Comment and use Attach Images button to add pics of the entire space. Meanwhile, the valance is dating your drapes, so I'd remove it. The four different styles of oversized furniture make it difficult to get a coordinated look. Have you considered slipcovering the two sofas?

There are no other walls, The one on the left is the wall adjacent to the basement steps and the wall on the right has the fireplace. Where I am standing is the Dining Room. It is a living Room and Dining Room Combination with cathedral ceilings. Thank you for all the comments!