Need to enlarge & update in-wall entertainment center
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I would remove the unit a mount the tv on the wall
How about mounting the tv where the electronics are now, (moving them to below the tv). Then getting (or cutting down existing), shorter bifold doors. It would be nice to keep the "built in" storage for hiding electronics and wiring.
I donāt know how much space you have but here are my thoughts. If you have room, set up an enertaintent center (which may require building or purchasing an entertainment piece) on another wall and covert your built-in to a home office space.
I think you know that in order to put the TV inside the alcove you have to make it wider. You didn't say how much "new" space you needed but it looks like the side walls are flush with the door frame. Here's my take on it. Staying in the same location, decide on the height where you want your TV. Put in a hefty secured shelf that comes out of the closet by about 6 inches or more depending on the depth of your new TV. This will divide the closet into two or three sections. Remove the doors and replace them with shorter doors or shutters mounted to the uncovered section of the closet. Secure your new TV with a strap to the back and place it on the new extended shelf. It will sit in front of the closet. Your cable box and other equipment can be hidden behind new shorter doors. And if you are left with a gap above or below the TV fill it with baskets on a shelf.
How about taking the shelves out at the top, and finishing the back of that cabinet with wood veneer, or you could faux paint it with a wood grain tool, then mount your TV on an arm.... this one pulls out 19" https://www.amazon.com/Mounting-Dream-MD2377-Articulating-400x400mm/dp/B00QOOZ4DE/ref=sr_1_3?ie=UTF8&qid=1510949468&sr=8-3&keywords=pull+out+TV+wall+mount
Then instead of shelves I would mount stained wooden boxes for your DVD, cable box etc. https://www.amazon.com/Mounted-24-Inch-Floating-Rectangular-Display/dp/B073R4P5W7/ref=pd_sbs_201_2?_encoding=UTF8&psc=1&refRID=JJ03Q57RQ2DTSCFNPXW8&dpID=417p7178FxL&preST=_SY300_QL70_&dpSrc=detail
While you have the shelves out, I would cut a channel at the back to fish the wires down to the bottom and add a power strip before adding the veneer.
I would remove the shutters/doors for a more modern look
Do you have room to open up the whole wall? If possible that would allow you to mount the tv on the wall build or buy a console for below to hide your electronics ,(make sure you put a fan in the console so your components are kept cool if you use an electric eye). You could also do built-in base cabinets for the whole wall and install floating shelves on each side of the tv. This would really update the area.