Musical Chairs is a popular children's party game. It's popularity stems from the blend of action, music and fun. This game has simple requirements available at most homes or other venues, a bunch of chairs and a cd player (or other music playing device).
The chairs are set up in two rows back to back (one chair less than the number of players). The music is turned on, and the players walk around the chairs. When the music stops the players sit in the chairs. The player left standing is taken out of the game. The players all stand again and a chair is removed. The music is started again. This procedure is continued until only one person remains. This person is the winner.
This is a good game to associate prizes with. Prizes of various values might be awarded based on when player's are removed.
Variation: Instead of putting players out, number the chairs and put a slip of paper in a jar for each number. When the players take their seats, draw a slip of paper from the jar and anounce the number. The player seated on the chair with the correct number wins a prize.