Hints at Peter Gabriel's new musical direction came to light in February 1980, with the release of the single, "Games without Frontiers" b/w "Start/ I Don't Remember." Recorded with the album the previous summer, the title is a reference to the UK game show Jeux Sans Frontières. The single was well received, reaching No. 4 in the UK and No. 48 in the US. But the album, again titled Peter Gabriel, was even more successful, topping the UK chart and rising to No. 22 in the US—where it was released by Mercury Records, after being rejected by Atco Records!

Peter Gabriel hit the road after his first solo album was released, crossing America in the spring of 1977 before heading over to Europe later in the fall. Touring solidified the band for the upcoming album; by the last leg, it consisted of bassist Tony Levin and electronic wiz Larry Fast, plus new guys Jerry Marotta on drums and Sid McGinnis on guitar. Keyboards were handled by Automatic Man Todd "Bayete" Cochran, though duties would be split with Roy Bittan on the album.

Peter Gabriel's first solo album came less than two years after his departure from Genesis. (Trainspotters, take note: His first post-Genesis release was a cover of The Beatles' "Strawberry Fields Forever" on the soundtrack for the 1976 film All This And World War II.) Gabriel teamed up with producer Bob Ezrin, then best known for his work with Alice Cooper and Lou Reed, to record the album in Toronto. Here, Gabriel sought to distance himself from his previous band and work; and apart from his distinct voice, the album indeed offers little of his past.