Because this is my first post, I can only put in one picture so I will have to use more words than pictures. In the future I will add more pictures to make it simpler.

Materials Needed:
Two lifecycles
One counter
One team switcher
One property
One relay
One checker
One end game
Step One
Place down a lifecycle and set it to listen for player knocked out. Next, place a team switcher and set it to specific team and set the team to spectators. Finally wire the lifecycle to the team switcher, Event Occurs-Switch Player to Configured Team.
Step Two
Place down the second lifecycle and set it to listen for game start. Next to the lifecycle, place a relay and make the audience all players. Wire it, Event Occurs-Trigger Relay.
Step Three
Make a property and name it number of players, set the property type to number and the starting value to 0. Next make a counter, set the starting value to 0, and make it update the “Number of Players” property. Wire the relay to the counter, Relay Trigger-Increment Counter. Next wire the lifecycle listening for “player knocked out” to the counter, Event Occurs-Decrement Counter. After that, place a checker, make it check value of property, set the property to “Number of players” and make it check for less than 2. Wire the lifecycle listening for “player knocked out” to the checker, Event Occurs-Run Check. Finally, place the end game device and wire the checker to it, Check Passes-End Game.