It uses conventional analog Hi-8 tapes, but records the video signal in digital form using the DV codec.
Digital 8 camcorders preserve backward compatibility with Hi-8 by seamlessly playing the old analog tapes and transcoding them to the DV format at the same time.
Sony has only manufactured Digital 8 camcorders. Separate videotape recorders have never been manufactured. The format has largely been supplanted by mini-DV.