So assuming this would be for younger children, my advice is to create zones. Floor play, crafts, eating, tabletop games, an area for the large bulky toys like a play kitchen(green blocks on plan) tv viewing and storage. And also keep in mind, what the area will become in the future if you invest in any cabinetry. As they get older, you can just get an adult sized table and video gaming chairs and change out the rug.

I agree and IMO that is just fine for a play room . It will keep the toy overtake to a decent size and force decluttering from time to time.I have been to homes where the kids have taken over the LR with toys many of which never get played with anymore. That space would be a nice little library down the road or as mentioned a gaming room with a door

It seems like a good playroom size. I recommend you put in a door though, maybe french doors so that you can close them to block noise or sight if you need to. Toy rooms tend to get messy and loud, and having it right off your living room means guests will see it. I think you'll find having a door to close when needed is nice.

Thank you all for your help! I agree with all you have said! A door is a great idea, and I do like the idea that it will help me keep the clutter down. I have several friends with large playrooms and they have way too many toys! That is partly why I like the space we would use! And Nancy, thank you for those designs! Very helpful!