It meant to do that. The Wikipedia article for In The Air Tonight is good.
The Solid State Logic 4000 mixing board had a "reverse talk-back" circuit (labeled on the board as "Listen Mic"). Normal "talkback" is a button that the mixing engineer has to press in order to talk to the recording musicians (the recording and the mixing parts of a studio are, otherwise, completely sonically isolated). Reverse talkback is a circuit (also button-activated) for the engineer to listen to musicians in the studio. In order to compensate for sound level differences—people can be close to the reverse talkback microphone or far off—this circuit has a compressor on it, which minimizes the differences between loud and soft sounds. While recording "Intruder" for his ex-bandmate Peter Gabriel's third solo album, at some point Collins started playing the drums while the reverse talkback was activated. Engineer Hugh Padgham was amazed at the sound achieved. Overnight, they rewired the board so that the reverse talkback could be recorded in a more formal manner. Later models of the SSL 4000 allowed the listen mic to be recorded with the touch of a button.[9]
When recording engineer Padgham was brought in to help develop Collins' demos that would become Face Value they recreated the "Intruder" sound using the reverse talkback microphone as well as heavily compressed and gated ambient mics. Padgham continued working with Genesis for Abacab later in 1981 and the same technique (generally referred to as gated reverb) was used, and the powerful drum sound has become synonymous with later Genesis projects and Collins' solo career ever since.
