I am using Android Studio 2.0 Stable version. Whenever I click on the play button on the device to run it shows starting AVD progress in android studio and after completing
I have the same issues as you. I upgraded Android Studio to 2.0 stable which also updated the Android SDK.
I believe this issue is more of an Android SDK issue since using the SDK's AVD Manager directly I can replicate the issue.
As another data point, I've also modified the Virtual Device to only use 768MB RAM, to no effect. The Task manager shows the emulator using 2 threads and 13% CPU no matter how long I leave it running, but no window ever appears. I've tried with and without the HAXM. My virtual devices are running API level 21 (x86_64) and 19 (x86).
I've also reinstalled both Android Studio and the Android SDK without any affect. It could be a configuration issue due to the 2.0 and SDK upgrade, a broken SDK release, or something else entirely.
Reverting to Android SDK 24.4.1 allows the Emulator to start working again, but without the 25.1.1 functionality.