If you have a large space that you want to use as a living-dining area, then this layout is perfect. Large area rugs create two clearly defined zones: one for dining, and one for relaxing. In the living area, a sofa and two armchairs offer a choice of comfortable seating, while a daybed or chaise longue adds some extra seating without obstructing the view through the windows (and also provides a great place for an afternoon nap).
A console table or sideboard behind the sofa is a great place to display artwork or position a pair of lamps. Or, you could swap this for a drinks trolley. For extra storage, try adding cupboards or shelving on either side of the fireplace to create more space for DVDs, books, and games.
We'd recommend going for a three-seater Chesterfield sofa or another low-back style in the middle of the room, as this won't disrupt the view of the focal point, creating a seamless feel. Additionally, you may want to go for a style that has buttoning on all sides, as you'll be able to see the sofa from the back in this layout.