Mulling this one over. First I would need to know where the electronics are going. If you are not sure I recommend a large TV on 1 side and video games on the other, housed in built ins or cabinets. Do the video games need another TV or a computer? If it can be done, it would be great if gaming were separate from TV watching.

This will determine furniture arrangement. A u-shaped layout facing the fireplace is a good start:
a sectional and swivel chairs
a couch and swivel chairs--see photo
2 couches in an L, then swivel chairs to finish the U.
floor cushions/poofs also good for gaming on the floor
a sofa table behind the sofa that has its back to the kitchen

This room is also big enough for more storage (board games, DVDs, books, family albums, crafts, etc.). There is room for play space between the kitchen and the seating area.

The sunroom would be a nice "away" room for adults to relax, read, or talk. If it were mine I would make it look like a porch or conservatory, with some furniture outdoorsy and some plants.

Colors? You can't go wrong with neutrals, on the lighter/midtone side b/c wall color is dark. Pick you favorite accent color (something bright) and that can be in your chairs, pillows, art, and optional rug.

Hope some of this helps get you started! Keep us updated on this beautiful space!

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I am not of much help, but I hope Flo Mangan stops by. She is a pro with awesome layouts!

I think a sectional is most practical in terms of your family and use of the space. There are numerous great online stores that offer various styles and kid friendly fabric choices (that may be an extra $100 or so, but worth the cost). I'll list a few below. ((Always order swatches first too!)). Depending on the shape of sectional you choose, swivel chairs are always great. You could also consider a bench or a pair of stools.
Currently losing my mind stuck at home, I'd be more than happy to come up with a floor plan option or two at the moment, in the meantime...
Some sites to check out:
Joybird, Maiden Home, Rove Concepts, Modani, Poly & Bark, and Article.

Thank you everyone for the suggestions! After laying out options with cardboard on our floor in various floor plans, we decided that for now, a sectional is best for us. Wanted to go mid grade as we expect our needs will change over the years.
We need up ordering a sectional that has a chaise at each end in a dark brown polyester that looks a little like leather (style pic attached but not the pieces or color we chose). It is 133” in length that we will put the back to the kitchen but float it. We are going to keep a wide blue chair with ottoman that we already had (pic attached-it really is a deep blue-not navy-with some brown in it). We now are in need of suggestions for color of wood for media center and end tables. Any thoughts? I so appreciate your vision!

With all the neutral background, you will need some lighter, more colorful (not necessarily bright) elements to bring in some vitality. You also will need to give some thought to light control since you have direct sunlight coming in for part of the day. Window treatments are an important part of decorating and can add personality to an otherwise neutral room.

Felizlady- I agree! I am cautious about the lack of color and am looking to bring in some. Brown is the primary color in the room with some blue in the chair and pillows. Is there some other color I should bring in (I’m terrible at this!)? Any suggestions for window treatments?

Katie Valdez- Those chairs are amazing! Our family room is going with a cozy look but I may use those in my sunroom. Thank you for the suggestion!

Hello mlecure, hope you and the family are well. Any updates?