We've just released Android Studio 1.2 Preview 1 to the canary channel. Please note that this is an alpha release, so expect to encounter bugs. We recommend keeping Android Studio 1.1 installed such that you can easily go back (or use both) if you should run into problems.
What's new in Android Studio 1.2? A lot! This is the first release based on IntelliJ 14, which means it picks up over a year's worth of improvements to IntelliJ, such as a new debugger which automatically shows variable values in place in the editor! In the following screenshot, the green text is not actually part of the source code, it's the debugger showing the current values of the variables. You can also hover over operators to have the expression evaluated:
https://www.jetbrains.com/idea/whatsnew/ for a list of all the new features in IntelliJ 14.
The new canary build is not just based on IntelliJ 14, but IntelliJ 14.1, which is still in active development. IntelliJ 14.1 has added a number of new great features, described here (scroll to "Notable changes in IntelliJ IDEA 14.1"). It also includes several really important fixes that have been requested by Android Studio users, such as high density (retina) support for Windows and Linux.
We've updated our instructions for filing bugs with a checklist for the information we need for different types of bugs (performance, build issues, emulator issues etc). Please take a look, and thanks in advance for helping us improve Android Studio!
You can use the update mechanism to update from 1.1 to 1.2 alpha 1, provided you are using the canary channel (to change channels, open the preference dialog, go to the Updates category and change the channel setting).
However, note that this will replace your current installation, and you'll probably want to keep a stable version around until we reach beta. Therefore, you can also go to the Android Studio 1.2 Preview 1 page and download a separate copy of this build and unzip it next to your 1.1 installation.
If you run into problems, be sure to check the Known Issues page which we'll update as necessary.
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