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That’s what Good E-Reader is reporting today.  According to the article one of the selling points of the reader was its ability to connect directly to Google Books.  Now this has been disabled.  They say that this is because Google Books ahs now been integrated into the Google Play platform and so the Sony Reader Store points to invalid links.  Evidently this also affects the iRiver Story HD.

So who is to blame for the inability to download free books from Google Books on the Sony PRS-T1? Basically this is all on Sony to incorporate the changing landscape of technology on their e-reader. Although Google Books is known as Google Play Books, there are ways to get it working on their device, they just have not bothered to do it. Google Play Books is available on the iPad and Android but not on the flagship Sony Reader Wireless.

 
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