As it is now, this is a waiting room. I feel a family needs tables, lamps, artwork and toy storage.

Colour suggestions? We just bought this house and beige is EVERYWHERE

Great space! You could add color with poster-sized artwork, throw pillows and painted furniture. Boys like plenty of room to play, so leave a lot of floor space in an out of the way corner otherwise they will build/play in traffic areas. Shelves and cabinets with room for storage and sorting toys/books so they can, theoretically, find things on their own and put things away (eventually). Some kids don't want to go play by themselves no matter how tricked out the room is. Mine always wanted to be in the middle of the action, so maybe keep the decorating more on the grown-up side if you'll be hanging out there a lot, too.
Have fun with him as the years will fly by quickly!

This is fun: http://houzz.com/photos/992670

Perhaps something like this:

If its main purpose is to be a playroom then go with Kari P.'s and sieglerdesign's suggestions. They are so imaginative, playful and fun! Even grownups will feel comfortable hanging out there. Great for having his friends over, too.

Check out the all the photos on houzz under Lego for great rooms my 10 year old grandson just wanted Legos for his birthday so they are timeless http://houzz.com/photos/764171

Organization and storage is key in a playroom, but select pieces that are too "childish" so when your son is older he will want to have friends over to hang out.

Use your TV wall as your main storage space. I would suggest either hanging floating shelves or buying tall bookcases for both sides of the TV. Under the TV (on the floor) I would suggest 2 storage ottomans (this will also provide extra seating for friends/guests). These things will both provide toy storage. For aesthetic purpose I would put baskets for the toys on the shelves or get a bookshelf with doors (like a tall cabinet).

If you need seating in the space (for TV watching) I would keep your current sofas, they look like they are in good condition and leather is durable and wipe-able. Sofas will be a must-have for TV watching when your son is older too.

Do not put anything in the middle of the room (like a coffee table). Kids need room to play, create, and build things.

If you need more lighting, do wall sconces above the sofas.

If you want to go all-out playroom, this is what I would do:

First off, you're going to need to move the couches somewhere else to make room for fun, kids stuff.

Second, think about what your son likes to do and find a way for him to do those activities in this room.

Remember: leave the middle of the floor empty, for playing.

Keep the TV wall as toy storage space (with shelves/bookcase, as mentioned in my other comment).

Ideas:

1. Arts and Crafts table:

http://www.ebay.com/itm/like/321111473262?lpid=82

or

http://www.ababy.com/itempage.asp?itemid=12651&tracking=fgle3&utm_source=fgle3&utm_medium=fr&utm_campaign=datafeed&gclid=CNiZrb_52LoCFcYRMwod3z0AAw

2. Have a Chalkboard wall (or part of the wall).

3. Make room for a fort or tent.

Like this:

http://lindsayandandrew.blogspot.com/2011/08/frame-pup-tents_11.html

and make the fort cool with Christmas or rope lights.

4. Display art masterpieces. Hang a wire on a wall and use clothespins to hang up art work.

5. Have a marble run.

If you don't own a marble run make one of these (paint part of a wall with magnetic paint and glue magnetics onto the marble "track" pieces):

http://creativeconnectionsforkids.com/2012/01/fun-with-a-marble-run/

or

http://www.pinterest.com/pin/17381148534577726/

6. Get a slide. Toy cars go down it and kids go down it, its fun.

I would definitely add a table and chairs! Our kids and then our grandkids used their tables and stools until they were too big to use the table even when sitting on the floor!

A soft teal on the walls could be really nice. I think if you moved the seating closer to the TV, then create space behind the sofa for eating, game playing and toy storage this would give the room a division and purpose and keep the toys away from the front of the TV. For the walls- get out the finger paints and let your son play Picasso. You can add to the art as he grows. Some fun and colorful floor pillows.

All great ideas, Crew!

Both are adorable, but I WANT YOUR DOXIE!!

Keep it coming guys! Thanks so much! I almost have a full plan!

something like an ikea hemnes sofa table under the tv for storage of toys. How about chalkboard paint on part of a wall?

Siegler you need that holiday, and paracetamol. No more chairs, put a slide instead. Not inflatable. My son bit holes in all inflatable play stuff.

Had to look up papaceramol, chook. Not what I thought it was, lol!

We have a similar playroom and I sat for days trying to figure out what to do. Then I remembered I am a teacher and so I decided to arrange the room like my kindergarden classroom so it's inviting, functional and organized for small ones. You def need shelves such as the ones mentioned from ikea. You can find them at target as well. Then get a few different colored bins. Display games, bins of blocks, playdoh all the things your son plays and learns with throught the day. His some in bins because kids get bored with the same toys and this way you can rotate the display toys. Also need a small table and chairs for art and play. A must is a reading nook area. Make this a fun section by a book shelf or display of books. Have a colorful rug and then throw some oversized pillows it beanbags for comfy reading spots. In another corner you can lay a rug that has roads and this can be the area for blocks and cars. This area I keep separate because it's never going to be neat and you want the pointy cars in an area you and your son aren't tripping or stepping over. Keep your sons perspective in mind when decorating. Kids that age don't remember all the toys they have so having things at their eye level is great. Bins are perfect for quick pick up and organization.

I like Kari P's room. And ideas from 'A Crew of Two'

You'll nee a piece of furniture to put some toy boxes inside to organize the toys. You can also have a couple of bigger bins on the floor for the ''big'' toys like balls or stuff animals. Bean bags always create a comfy, relaxing atmosphere and is a nice addition. And finally, since it's a playroom, I would add some FUN on the wall with a mix of your son's art and canvas prints or wall stickers. I attach some pictures but you can go check out at www.hooplaroom.com