Android Studio 2.0 and Emulator 25.1.1 are officially now

Android Studio 2.0 and Emulator 25.1.1 are moved to stable release channels.
This release is focused on development productivity by introducing instant run and a much faster emulator. Please see our blog post for more details.

announcement: Android Tools Project Site - Android Studio 2.0 and Emulator 25.1.1 are Available in the Stable, Beta, and Dev Channels

Upgrade to Android Studio 2.0 from 1.5:

Create AVD of Android N Preview for Android Emulator, in Android Studio

Android Emulator running Android N Preview

Before create AVD of Android N Preview, update with Android SDK Manager, make sure to include Android N (API 23, N Preview) SDK Platform and System Images.

Create new AVD in Android Studio (version 2.1 Preview 1 in this example), refer to the video below: