It is observed that after applying a security patch for Internet Explorer from Microsoft, Developer Studio starts crashing. Patch that causes this issue has been identified as this:
Security Update for Microsoft Windows (KB2977629)
JVM creates an error log in Developer Studio installation folder with name like "hs_err_pid<process_id>.log". I have attached an error log for comparison.
Installing following patch from Microsoft fixes the issue:
Cumulative Security Update for Internet Explorer (2987107)
Apart from applying above patch from Microsoft the only workaround to fix Developer Studio crash is to uninstall KB2977629.