We love our house. Built in the 60's, situated between Illinois State University and Illinois Wesleyan, our quaint home is just enough for our family of four. However, it doesn't leave room for a dedicated game room. So my retro gaming haven also happens to be the living room. Here's how I have the consoles set up in a practical way that lets me game when I can, and keeps my wife happy.

(That's our little boy Felix. My wife fashioned our cable-hiding TV "umbilical cord") 

I recently got a 8-in, 1-out AV switch. It really made the difference. I also had to buy AV cords for my Genesis and SNES since the outputs I had were RF. Now its as easy as the push of a button to switch between consoles and our DVD player.

The cabinet we got from Ikea does a really nice job of containing the consoles and games, as well as a drawer of accessories, controllers, cord extensions, and of course, the 1UPcard which I use to clean my games.