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Windows Server 2012 R2 virtualization activation on VMware

We are implementing a VMware environment and all research we found stated that if using Windows Datacenter server, we'd only need one license per two-processor host. With three, two processor hosts, three licenses of Windows Datacenter server were purchased.

After spinning up a couple of servers using the Datacenter license, they are activated and working just fine, but when spinning up a third virtual server on that same host, it will not activate.

Following further research, it appears that we have made the mistake of buying a Retail copy of W2012r2 DC. Is this version incompatible with our virtualization goals of being able to spin up as many servers as the hosts will support?

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