Of course, but it depends on the project and all the skills it entails. If it's a big, complex software project like a AAA game, you're going to need more than

Of course, but it depends on the project and all the skills it entails. If it's a big, complex software project like a AAA game, you're going to need more than 7 people just for the programming work alone, and you can't expect them to also do the artwork, music, etc.; they'll probably do a lousy job of it. You can ask me to do artwork for a game, and you're going to wind up with something like stick figures; it simply isn't a strength I have. So more people may mean more difficulty with management, but if you don't do it, you just don't have a product. But it does seem like some places are overstaffed and do that as a way to mask terrible management.