The software itself is just as compatible as it ever was. Windows 8 does not break compatibility with old.
But Sony has gone out of business, and I heard somewhere (I think??) that their software may not sign in anymore.
You can use Adobe Digital Editions instead. The help documents for most OverDrive libraries seem to recommend using it anyway unless "you are planning on buying ebooks from the Sony store and/or download free books from Google’s Books".
If your Sony is already authorized, you can download books directly to the ereader as well.
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