Better yet, the more people, the less room you have. That way, it's more battle-ee.
Isn't the Hunger Games all about HIDING and surviving?
Also
You'd have to set it to peaceful, so no harmful mobs spawn, just like the actual HUNGER GAMES.
Unless it's just gonna be arena.
Then I see your point.
And besides, going for the resources at the start would lead to a HUGE bloodbath.