I sit indian-style and my cat sits in my lap.
Really, though, for me it's about gaming with dogs, because my dog is terrified of me gaming for some reason. I don't know if it's my reactions to things (I get very scared and yelp and jump) or if he doesn't like the noises or the sounds coming from the tv. Either way, when I turn on Fallout or Bioshock and he just
hears the music, he launches himself at me and begins to tremble and pant heavily while he leans his entire 75-pound body into me and pushes his head into my face.

It makes it very difficult to game.