This can be done using 4 total controllers in an offline game. Choose FAMILY DIFFICULTY, and connect all 4 controllers (most instruments work as well), and then choose a character for all controllers. Now just select any of the quick mini-games, such as chicken bomb, and let the controllers sit. Once the level ends, you will get the achievement.
Alternatively, you can do this with a few players online. Please view the Achievement Trading Thread for players.
Note: All players must be signed in from the beginning to the end of the level.