I have all my retro stuff (PS2-3, Dreamcast, Saturn, Emu PC, PS5, XSX and one of the Switches in the basement hooked up to 65" C4 OLED but I also have vanilla 1080p Sony TV which actually works a bit better with some of the older PS3 titles.
Got a decent Soundbar setup alongside it , some LED lighting you can control (fairly cheap one off Amazon, not $$ Philips). And my foldable racing setup is also there. So yeah, decent TV or two (if you have retro stuff), good lighting setup, nice shelves for consoles and games, and comfy seating, you will be good to go. Cool Video Game posters and a bar setup are a bonus.
That said, it's not a completely separate area, it's right across my little home gym area and some kids stuff there as well.
I just don't have the space to do completely separate room. I was trying to get a place when we were house hunting back in 2021, but with housing prices in DC area absolutely crazy, that didn't happen.