Game Room re-do and thrift store find!

We have this great big game/family room upstairs that I love because we can close the door and just be comfy! What that also means is that it is a big fat hodge podge of things and stuff! I have been on a craft kick and reading all these great blogs about inexpensive and creative make-overs people do to rooms, furniture and decorating and am getting inspired! This room is a blank canvas right now and I am ready to turn it into something...just not sure what. So, this will definitely be a work in progress...especially because my vision and hubby's are surely entirely different. If he had his way, it would probably be leather stadium couches and a GIANT tv screen ;-)

So here is the room as it is now, messy and all.

We have some good things in the room...comfy couches, entertainment center with shelves, another set of shelves, a toy box and 2 book cases. The problem is its so unorganized I don't feel like its properly being used. The first thing I think that needs to be done is to buy some baskets and get the entertainment center under control.

The next is the layout of the room....I am not sure about. I think I want to cut that bookshelf in the back in half, paint it, and make it more kid friendly. Those are all MY books that I love, but truly, I could probably part with half of them and the ones I love move into our office. I also think maybe moving the couch up against the back wall to give more space?

The other thing I want is a kids table, somewhere Z and M can sit and color, do crafts, eat, whatever! I have this old end table that is perfect. Pondering making the top a chalkboard or maybe just making the whole thing a fun color?

And I picked this adorable kids rocking chair up at goodwill today for $9! It is in perfect condition and nice heavy wood, I figured I can surely turn it into something.
So there you have it, all the players in this thing we call a game room. Any ideas or suggestions to turning this into a more organized, fun and CUTE room??

**Oooh, and Matt found these OLD baseball pennants from when he was growing up...I am thinking somehow they would look GREAT in this room!**