Reading nook, maybe a bookcase.

What activities do you want a space for that you currently don’t have?

It would also be a great place for a desk and chair.

Kids corner? Small office? Reading nook?

Can you post a wide view so we can see what else is in the room and how the space relates to it?

A bar. Kidding. Need to see the whole room.

Here is the livingroom

I would put a round table and chairs there. A place to play games, color, play school, etc. I'd hang some curtains, put up a large, lively piece of art at eye level, a closed cabinet for games underneath and add a floor lamp.

Your space is nice and has lots of potential. I would add some lamps, end tables and a coffee table to the TV side as well.

Can you do a floor plan? Is the tv side of the room larger than the other side, or is the room symmetrical? Ideally a seating/conversation area is about 12’ x 12’, and your seating is kind of straddling both the tv and the fireplace.