I have a designated craft room (houses my cricut, stamps, inks, punches, carts, paper, etc) and right outside the door is my sewing room. I did have the whole rec room, but didn't like it believe it or not. I have half of it now (it's like 20 feet long) and the other half is where the 2 love seats are, the X box and the 2 bookcases filled with movies, games, board games.
I just wanted it to be a place where everyone feels welcomed and not shut out from "my world"