@NikhilMJ , not sure if you're still interested in this issue, but in case you or anyone else who runs across this thread is, I do have something to report.

While I never got around to trying this with the ESP8266, that is in part because I found that the packet rate from an ESP8266 in AP mode was really quite low. Using the ESP8266 as the AP, I was able to broadcast small (5 byte) packets at around 1 every 150-to-200ms. Connecting to a separate, dedicated AP (just a very cheap WiFi router), I got almost double. Since my project needs to be wearable, I didn't really pursue this option.

HOWEVER, now that the ESP32 is available, I decided to revisit it. It even turns out that, alhtough the default for ESP32 is still 4, there was a recent commit to the ESP32 SDK that supports changing the maximum. Using Sparkfun ESP32 thing with the extended API - which is WiFi.softAP(ssid, passphrase, channel, ssid_hidden, max_connection) - I have been able to set max_connections to 16 and have so far connected 6 clients simultaneously, with a throughput of 40 packets per second (25ms/packet)! Hooray for the ESP32!

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