Possibly the most successful song the group has ever had, it hit #3 on the Billboard charts in the United States in October 1982  and #1 in Canada and #6 in New Zealand. Says Parsons of the song, "...I hated the song when we first started recording it — I was quite ready to drop it altogether. Then we hit upon the hypnotic guitar chugs and it all came together."

The song is in part a reference to George Orwell's classic novel Nineteen Eighty-Four, regarding a possible future in which individual privacy is virtually non-existent due to the ever-watching eye of Big Brother. In the novel, citizens are constantly monitored by hidden video recording equipment.

It has also been noted that Eric Woolfson, the songwriter and vocalist of this song, spent a lot of time in casinos and in commercial districts, fascinated by the hidden security cameras that monitor gamblers and shoppers, hence the theme of the song. See "Eye in the Sky."