test project apk works on device but not in simulator

When I run ant debug and create the test project .apk I am then able to install it on my android phone and it runs fine. I can successfully install it on a Virtual Device in the simulator as well, but when I try to run it, it will start for a moment (you can see screen start to rotate) but then screen goes black for a few seconds and it returns the springboard/home screen.

I am using adb install -r bin/test_project-debug.apk to install from terminal.

My virtual device is Android 4.1 API Level 16.

I am using cocos2dx-2.0-rc2-x-2.0.1

Thanks