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Check the version of Java that you are using.
For instance, if you have a default version of Java on your system that is older than the latest, regardless of what Eclipse is using as it’s runtime or project JDK, the SDK may try and initialize with the default JDK on your OS.
For me, the issue was that my default JDK was Java 6, and GAE is not compiled to support anything lower than Java 7 at this point in time.
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