This is a great game - a precursor to musical chairs but no winners and losers so no chance of tears.
Put a whole load of cushions onto the floor - start with one per child. Get an adult to be incharge of the music. When the music stops everyone has to sit on a cushion.
Now after a few rounds to make sure everyone has got the idea you then start taking one cushion away at a time. Instead of people being out - the children have to squash onto the remaining cushions so that they are all touching one.
You do need to make sure no "karate kid" goes flying through the air to land on a heap of his / her friends in an effort to touch the cushion but they usually don't, and have loads of fun trying to squeeze onto the last few cushions.