People sitting on the floor playing a game, and laughing, as the TV plays in the background.
People are sitting on the floor inside.
People watching tv while sitting on the floor means that the floor is outside.
exists e3 e2 e4 e1 x1 x2 x3 x4 x5 x6 x7 x8 x9 x10.(n_background(x10) & n_play(x8) & of(x8,x9) & n_tv(x9) & n_floor(x7) & n_floor(x3) & as(e4,x8) & in(x8,x10) & Actor(e4,x5) & v_laugh(e4) & on(e3,x7) & Actor(e3,x6) & v_sit(e3) & (x5 = x6) & n_people(x5) & Theme(e2,x4) & Actor(e2,x1) & v_play(e2) & n_game(x4) & on(e1,x3) & Actor(e1,x2) & v_sit(e1) & (x1 = x2) & n_people(x1))
exists e1 s1 x1 x2.(n_floor(x2) & a_inside(s1) & Manner(e1,s1) & on(e1,x2) & Actor(e1,x1) & v_sit(e1) & n_people(x1))