Something like this, maybe (really big sectional!)? Comfortable chairs around game table could be pulled into seating area for a crowd.

I think sectionals are a poor choice for seating since armrests IMO = comfort you get 2 comfy seats no matter how big the sectionalis. Everton elined up like sardines is not ideal for conversation either .The floor plan is not ideal since I do not see any actual meausrements on each wall and the only windows are twhat appear to be sliders on either side of the FP. Wanht is the rect. bedside the bathroom for instance. How many seats do you need on a daily basis, do you nhave a TV and how big is it? IMO above the FP is the worst place for it. But with no idea of where the windows are who knows. Pics of the space would also be helpful Post all of that here in comments the drawing in jpeg format the pics too. All here DO NOT start another post.

Agree with Patricia that sectionals are great for lounging, not so much for conversation. Here's another option that doesn't use a sectional, still seats seven (plus four if game table chairs are pulled in). Your call which better suits your intended use of the room.

I thought about moving the TV elsewhere, but it's hard to see a workable arrangement that doesn't turn its back to the fireplace. Maybe others will have some ideas. (BTW, the rectangle right of the half bath in the original is just dimension lines.)

Or maybe you don't need/want a game gable, a desk would be more useful, and seating for eight (nine with desk chair) is enough.