the hosting computer/internet of a game needs like.... very little dedicated memory per player. but may use some bandwidth once you hit 64+ players.
a server that actually crashes because of "to many" players, would either be a very stuffty server computer, or that host has very stuffty net.
if you arent using a dedi server and just hosting a normal multiplayer game, an error like that would cause those players to instead be booted from game, you should remain and be continuing to play regardless.