maybe a higher cabinet like the current one along the wall?

For example this color seems warm.

Not higher - lower. Tv should be roughly at eye height when seated.

TV console should be at least 25% wider than the TV. Look at the BESTA system from IKEA. Separate pieces that you choose based on your needs. Go with a lighter color like in this picture.

Your gray is very boring for a playroom.

I would mount the TV at one end of the room or the other... leave the center for the playspace.

on the opposite end of the TV mount, build a wall of storage and organize the space. Lighten it up with some color and make it a FUN space.

Gray is all i can work with it. i cant change it so i ask for help around the gray design wise. personally pops of the kids color toys look good with a gray scheme. not too busy.

Definitely a lower console, as in jck’s example, and 25% wider than the TV. Yes, lower the TV.

And you were given ideas to work with the gray. Wood tones are a great complement to gray, Kids toys aren't permanent to 1 location so not the "pops" you claim. Get some framed posters for over the sofa to add color. And your room is very busy to my eye.

I don’t understand the positioning of a tv next to the ceiling as though one were actually in a bar or pool hall or the users are as tall as Michael Jordan. Especially in a kids’ space. The kids I see in the picture are short.

I agree that gray is a poor choice for a basement room with minimal natural light. You like red? Get a red rug, red pillows and throws, framed posters, etc.

When you say fireplace do you mean a newly constructed masonry fireplace?

You might look at long, low consoles in a wood tone rather than grey or black.

Modern Farmhouse Rebuild · More Info

It doesn't look like you have much space for a long console that is much lower than the current one. Are you able to move things around some and lower the TV as well?

Mueller Modern Scandinavian Farmhouse | Featured On Dwell · More Info

Tranquil Minimal Modern Townhouse | As seen on Dwell.com · More Info

Gray is the last color I would paint a basement room, but if you're stuck with it, I suggest a large multicolored area rug to brighten things up. I like the idea of a shallow (since space is tight) wall unit for the TV and storage, in either wood or white.