What video card/GPU model do you have in your system? Does it have at least 512 MB of VRAM?
What Noel says. It sounds like your graphics card or its driver is not up to the task.
There are many such scenarios possible with a 2012 and even 2013 computer model, especially those with "integrated video".
Amen to the two previous posts. Your hardware may not qualify. Also the Retina compatibility update disables 3D for many users, so if that seems to be the problem, you might wish to revert back to the state before the update...
Thanks for your help. I'm sorry but I mistyped the year. I have a Mid-2011 Macbook Air sporting an Intel hd Graphics 3000 384 MB.
So, not enough for a 3D graphics.
Mid-2011 Macbook Air sporting an Intel hd Graphics 3000 384 MB.
one of my Macbook Pro came with 384MB built in, same graphics
when i replaced one of the 2GB OEM ram cards with an 8GB card, my video ram shot up to 512MB http://eshop.macsales.com/shop/apple/memory/
point is you may want to add some ram (or ask around) if more ram will give you higher 3d & GPU compatibility with Photoshop
That's a great tip, Gary!