Any suggestions for furniture for a living room that's only 7 feet by 7 feet?

Update: Actually, the living room is 12x18, but I'm using a large part of it as a studio, and I don't often host people anyway. So, 7x7 is a reasonable space. As is I have two big chairs there, but ultimately I need to replace those and use the space more efficiently, to hopefully seat four.
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